SEBI Plans Tighter Norms For KPI Disclosures In IPO-Bound Companies

The Securities and Exchange Board of India (SEBI) is reviewing the Key Performance Indicators (KPI) disclosure framework introduced in 2022 to enhance transparency in Initial Public Offerings (IPOs), particularly for start-ups and digital companies without a profitability track record.

SEBI has sought industry feedback as part of the process. The move follows concerns about insufficient disclosures and valuation declines in the IPOs of companies like Zomato, Paytm, and Nykaa. The current framework mandates companies to disclose past transactions and fundraising details before listing. SEBI’s review aims to address gaps, ensuring investors receive clearer insights. The regulator has previously scrutinised KPI filings, notably in the FirstCry IPO, which faced delays over incomplete disclosures. The process is expected to take time for consensus-building.