Mumbai—SEBI’s chief has made it clear that the regulator does not set prices for new shares. In a press briefing outside a market event, Chairman Tuhin Kanta Pandey said the valuation of an initial public offering (IPO) is “in the eyes of the beholder – the investor.”
The comment came after investors and analysts expressed concern that Lenskart, a popular eyewear retailer, is seeking a 7,200‑crore‑rupee IPO at a high valuation. SEBI’s response is that the market will decide what investors are willing to pay, not the regulator.
Pandey also touched on the futures and options (F&O) market. He said SEBI will take a measured approach to any regulatory changes and ruled out stopping weekly expiries, warning that many traders rely on them. The chairman added that SEBI is studying trading patterns in the derivatives space, using large data sets, and will share its findings with the public before implementing new rules.
Although several reforms in the derivatives market have been announced, they remain off the books. SEBI’s stance follows recent speculation that the regulator might curb weekly expiries to encourage cash‑market activity and reduce speculative trading.
These remarks arrive amid growing debate over lofty IPO prices and a surge in retail trading in the F&O market, which could amplify market volatility and speculative risk. SEBI’s message is that market forces, not regulatory fiat, drive IPO valuations and trading dynamics.
Source: ianslive
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