Pendency of mutual funds and IPO applications has reduced, says Sebi's Madhabi Puri Buch

When markets are good and companies need capital they cannot wait. So, we have reduced the pendency of applications: Madhabi Puri Buch

The time for accepting mutual fund and initial public offering (IPO) applications has significantly reduced over the last few years, capital market regulator Sebi chairperson Madhabi Puri Buch said on January 10, while speaking at a symposium in Mumbai organised in association with stock exchanges and depositories.

Madhabi Puri added that as of November 2024, there are only two IPO applications which are more than six months old. This number in March 2022 was eight, she added, underscoring the steps taken by the regulator to reduce the pendencies of clearing. Same goes for applications of mutual funds, where, as of November 2024, only one such fund application was pending that was six months old. This number was 69 in March 2022, she said.

Madhabi Puri said that even though capital raising via equity has increased over the years, sometimes, preference issue and rights issue go unnoticed in the primary market. "We have tried to increase the rights issues by doing a fastrack rights issue which is followed by a preferential issue," Buch said.

Madhabi Puri also said that just as capital formation is important for economy to grow, inclusion is equally important as well, and hence the proposed Rs 250 SIP is crucial to enhance financial inclusion. Sebi chairperson also asked the State Bank of India chairperson Challa Sreenivasalu to support and popularise the micro-SIP by talking to its mutual fund business. The Rs 250 SIP is slated to be launched shortly, but the date has not been officially announced yet.

The Sebi chairperson also covered the potential for REITs, InvITS, and muni-bonds and said they have the potential to grow over the next 10 years.

Sebi chair also underscored that India's weight in the MSCI Index has been steadily rising, as a result, Indian equity markets now automatically get a 20% proportionate share of global passive funds as part of the emerging market index inflows.