What SEBI chief Tuhin Kanta Pandey said on IPO overvaluations

Securities and Exchange Board of India's (SEBI) chairman, Tuhin Kanta Pandey, reacted to concerns on overvaluations of recent IPOs, saying market forces decide valuations, not the regulator. He said SEBI's role is to ensure that companies make full disclosures.

He further said that SEBI's role is to ensure that investors have access to accurate and comprehensive information. He said that the market regulator cannot intervene in the markets. He said share prices will be decided by the markets based on opportunities.

"SEBI always thinks of transparency. We don't determine valuations, and it remains on the 'eyes of the beholden' and the investor. We cannot intervene in the markets...and decide what would be the price of the shares. Share prices will be decided by the markets, depending on the opportunities," SEBI chief said.

“SEBI's main role is to ensure disclosures are robust. We have mandated font size and disclosure of comparatives. We are largely focused on information and disclosures; the rest has to be determined by the capital market itself,” he added.

He also reacted to PSU companies lacking a minimum number of independent directors on their board, saying it will request the government to appoint independent directors timely.

He said regulations play an important role in striking a balance between market development and investor protection.

"Regulations play a constructive role for market development, but if the regulations become too constraining, too overreaching, and too micromanaging, then they may become problematic," he said.

He said SEBI wants to maintain a balanced and progressive framework, which can foster trust and growth. He said that the mutual fund industry is an example of the same.

"Take the instance of mutual funds, the mutual fund industry has grown and the investor trust in it also grew because of our regulations," he added.