Sebi's Leap into AI for Faster Financial Approvals

During the SEBI Samvad symposium, Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (Sebi), announced the regulator's exploration of artificial intelligence (AI) to expedite the processing of Initial Public Offerings (IPOs) and Mutual Funds (MFs) applications. This initiative aims to significantly reduce approval times, enhancing efficiency in the booming Indian IPO market.

Significant Improvements in Processing Times

Buch highlighted a remarkable improvement in processing times, with only two IPO applications pending for over six months as of November 2024, a stark contrast to eight in March 2022. Similarly, mutual fund applications have seen a drastic reduction in pending times, showcasing Sebi's commitment to streamlining financial processes.

Boosting Financial Inclusion with Micro-SIPs

Emphasizing the importance of financial inclusion, Buch proposed a Rs 250 systematic investment plan (SIP) for mutual funds. This initiative aims to make investment more accessible to the broader population, encouraging savings and investment among lower-income groups. The State Bank of India has been urged to support and popularize this micro-SIP, marking a significant step towards inclusive financial growth.

The Future of REITs, InvITs, and Muni Bonds

Looking ahead, Buch discussed the potential growth of Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and municipal bonds over the next decade. These instruments are expected to play a crucial role in diversifying investment options and enhancing the depth of the Indian financial markets.

India's Rising Influence in Global Markets

Finally, Buch underscored India's increasing weight in the MSCI Index, which has led to a proportional increase in global passive funds flowing into Indian equity markets. This development signifies India's growing prominence in the global financial landscape, attracting more international investment and attention.