The Securities and Exchange Board of India (SEBI) is looking at strengthening its investigation, enforcement and supervision capabilities to ensure the market continues to operate in an orderly fashion, sources told CNBC-TV18.
According to the sources, the regulator is watching the market very closely and key personnel have been redeployed to beef up SEBI's investigation and enforcement teams. This comes as a slowdown is seen in the pace of the number of initial public offerings (IPOs) in the pipeline.
In the first quarter of 2022, India saw just 16 IPOs owing to volatile market conditions. The number was 23 in the same period a year ago.
To protect the interest of minority shareholders during IPOs, SEBI may also review disclosure norms. The market regulator will be ensuring that there are adequate disclosures, said the sources, adding that it may also call for disclosures to explain the difference in private market value and public market expectations.
Among the other key areas of priority for the market regulator is developing a repo market for corporate bonds. Work is already underway both in terms of operations as well as regulations, added the sources.
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