SEBI Chief Clarifies Role in IPOs and Pushes for Stronger Sustainability Reports

Why is SEBI stepping back from IPO pricing but doubling down on sustainability? Over 1,200 companies now embrace BRSR—here’s what it means for investors.

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2025 November 7 . 7:25 AM

1 min read

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SEBI Chief Clarifies Role in IPOs and Pushes for Stronger Sustainability Reports

Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), has clarified the regulator's role in Initial Public Offerings (IPOs) and Business Responsibility and Sustainability Report (BRSR) disclosures. He spoke about the growing adoption of BRSR and the regulator's stance on IPO valuations.

Pandey stated that SEBI's role in IPOs is to ensure transparency and full disclosures, not to influence valuations. He said, 'IPO pricing is determined by market dynamics, not Sebi.'

Regarding BRSR, over 1,200 companies are voluntarily adopting the reporting framework, with 1,000 listed entities mandated to do so. Pandey highlighted the role of SEBI and its chairman, Sebi, in ensuring robust disclosures, including mandated font size and comparative data. He dismissed the idea of uniform BRSR standards, calling India's framework 'fairly robust' and tailored to local needs. The BRSR reporting includes 46 parameters subject to assurance or assessment, with a gradual rollout planned.

Pandey's statements clarify SEBI's role in IPOs and BRSR, emphasizing transparency and market-driven pricing. The growing adoption of BRSR shows companies' commitment to sustainability reporting, with SEBI's guidance ensuring robust and relevant disclosures.