SEBI Considers Oversight of Unlisted Shares and Highlights IPO Disclosure Gaps

The Securities and Exchange Board of India (SEBI) is considering extending its regulatory oversight to the unlisted shares market, currently governed mainly by the Ministry of Corporate Affairs. SEBI Chairman Tuhin Kanta Pandey highlighted concerns over pricing mismatches between unlisted shares and IPO valuations. Additionally, SEBI flagged recurring gaps in IPO disclosures, emphasizing the need for more independent due diligence and clearer explanations of risk factors, valuation, and capital structure to enhance transparency and investor understanding.