A new IPO or equity assessment is performed through indicators (KPI). Market regulator SEBI plans to change the framework of this key performance indicators. About three years ago, SEBI launched this parameter. And now the purpose of the regulator is to increase its scope. Its plan is to increase the disclosure period of old transactions to three years. The implementation of this rule means that now companies will have to inform about the transactions of the last three years.
This process of fining the disclosure of companies is also to keep in mind financial and operational parameters. The operational parameters here include the business’s ability to run for a long time and the factors giving growth to its financial performance.
Some sources have revealed that Moneycontrol has come to know that SEBI wants every KPI to accept the company’s audit committee and certifying professionals.
In the regulatory framework so far, companies have to give information about the transaction of the last 18 months. Along with this, the undertaking of the independent directors has to be taken that the priceband of the IPO is reasonable.
A person who is aware of the case said, “The KPI discloser was implemented three years ago for new age companies and startups. Now SEBI has accumulated so much data to strengthen the regulatory framework by analyzing it by analyzing it. .