ESG Authenticity and Valuation Transparency: Sebi's Stance on IPO Concerns

Sebi chairman Tuhin Kanta Pandey emphasizes that the market should determine IPO valuations without regulatory intervention. He calls for authenticity in ESG commitments, urging companies to integrate ethics and governance into their practices. Pandey stresses the need for informed judgment and innovation within regulation, avoiding overreach.

Sebi Chairman Tuhin Kanta Pandey has reiterated the market regulator's stance on refraining from intervening in determining IPO valuations, amid ongoing concerns about high pricing. Speaking at an event, Pandey emphasized that pricing should be determined by the market dynamics and investor perception.

His comments follow recent debates over the high valuation of Lenskart's Rs 7,200-crore IPO, with Pandey highlighting that the genuine value of such offerings should arise organically from market opportunities.

Pandey also called for businesses to authentically adhere to their environment, social, and governance (ESG) commitments, warning against superficial branding. He urged companies to institutionalize ethics, prioritizing genuine oversight and innovation to advance regulatory practices.

(With inputs from agencies.)