SEBI Chairman Tuhin Kanta Pandey has clarified that he does not view private equity (PE) firms exiting through initial public offerings (IPOs) as a matter of concern. Speaking to the Economic Times, he said such exits are a natural part of early-stage investing, where risks are high and returns vary significantly across companies.<\/p>\n
Pandey noted that investments in new-age companies involve high early-stage risks, and not all bets generate superior returns.
He explained that gains from successful investments offset losses from weaker ones, which is a core principle of private equity strategies.<\/p>\n
According to him, there is \u201cno contradiction\u201d between the broader purpose of the primary market and PE firms making partial or full exits through IPOs. These exits, he stressed, are aligned with the functioning of capital markets.<\/p>\n
\u00a0Also Read:<\/strong>\u00a0Groww Founder Lalit Keshre, a Farmer\u2019s Son, Becomes a Billionaire After Stellar IPO<\/a><\/em><\/p>\n Addressing concerns about high valuations in new-age companies, Pandey said SEBI is aware of such issues. However, he emphasised that the decision ultimately lies with investors, who can:<\/p>\n Reject an IPO<\/p>\n<\/li>\n Criticise the valuation<\/p>\n<\/li>\n Or choose not to participate<\/p>\n<\/li>\n<\/ul>\n The regulator\u2019s role, he said, is not to decide what valuation is correct but to ensure that all material information is available clearly, enabling investors to make informed choices.<\/p>\n Pandey highlighted that SEBI is working on reforms aimed at improving disclosure standards. This initiative aims to enhance transparency and provide easier comprehension of critical information that helps investors assess risks before applying for an IPO.<\/p>\n While foreign portfolio investors (FPIs) have been withdrawing funds from Indian markets, retail investor activity remains robust. In the broader market context, India\u2019s Chief Economic Adviser V. Anantha Nageswaran recently cautioned against celebrating what he called \u201cwrong milestones\u201d, such as rising market capitalisation ratios or increased derivatives trading volumes.<\/p>\n On November 17, Nageswaran also expressed concern over investors increasingly using IPOs as exit routes, arguing that such practices undermine the \u201cspirit of public markets.\u201d<\/p>\n Click here to explore SEBI Chairman Tuhin Kanta Pandey has clarified that he does not view private equity (PE) firms exiting through initial public offerings (IPOs) as a matter of concern. Speaking to the Economic Times, he said such exits are a natural part of early-stage investing, where risks are high and returns vary significantly across companies. PE Exits […]<\/p>\n","protected":false},"author":10,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1386],"class_list":{"0":"post-17756","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1386,"user_id":10,"is_guest":0,"slug":"ruchikadave","display_name":"Ruchika Dave","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/17756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=17756"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/17756\/revisions"}],"predecessor-version":[{"id":17758,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/17756\/revisions\/17758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/17757"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=17756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=17756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=17756"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=17756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Investors Free to Reject or Criticise High-Valuation IPOs<\/h2>\n
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SEBI Plans \u2018Concise Summary\u2019 for Better IPO Disclosure<\/h2>\n
The regulator plans to introduce a \u201cconcise summary\u201d of all key information related to IPOs, making it easier for investors\u2014especially retail participants\u2014to understand the essentials of the company and the issue structure.<\/p>\nRetail Participation Strengthens Despite FPI Outflows<\/h2>\n
Pandey pointed out that around 100,000 demat accounts are being opened every day, signalling sustained interest from domestic investors despite global uncertainties.<\/p>\nCEA Warns Against Misplaced Market Celebrations<\/h3>\n
\n<\/strong><\/em>Gift Nifty<\/a>
\nFII DII Data<\/a>
\nIPO<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"