<p>Mumbai: Amid concerns over high valuations in recent IPOs, SEBI chairman Tuhin Kanta Pandey on Thursday made it clear that the capital markets regulator will not intervene in the aspect.</p>.<p>"We don't determine what the valuation is. This is (in) the eyes of the beholder, the investor," Pandey told reporters on the sidelines of an event here.</p>.SEBI revises block deal norms, raises minimum size.<p>In the comments that come days after concerns have been raised on Lenskart's Rs 7,200-crore initial public offering being priced at a very high level, Pandey made it clear that SEBI cannot intervene on this aspect, pointing out that the market should freely determine the pricing depending on the opportunities.</p>.<p>In the past as well, valuation concerns have been raised by many stakeholders, especially in cases of new-age or digital companies like Nykaa or Paytm's IPOs as well.</p>.<p>Meanwhile, speaking at the event organised by Excellence Enablers, Pandey asked for companies to be more "authentic" on their environment, social and governance (ESG) commitments.</p>.<p>"ESG must be authentic, not a branding exercise," he said, adding that it must be tied to measurable outcomes, subject to independent assurance, and anchored in genuine board oversight.</p>.<p>Making it clear that ESG is no longer optional, Pandey said a business has to turn regulations into an advantage and not an obligation which needs to be complied with.</p>.<p>There is a need to "institutionalise ethics", starting with boards adopting governance scorecards that track cultural health with the same seriousness as they track revenue and return ratios.</p>.<p>"Boards must view culture as an asset that needs to be monitored, measured, and nurtured," he said, adding that some companies are tracking indicators like employee feedback and whistleblower activity.</p>.<p>The company boards must oversee not just financial risks, but data ethics, cyber resilience, and algorithmic fairness, he added.</p>.<p>Companies can have standing ethics committees at the board level, which can act as an early warning system, he said.</p>.<p>Pandey said from a regulatory perspective, there is a need to contain "regulatory overreach" and promoting innovation and accountability.</p>.<p>"We will review several regulations in consultation with industry and investors, with a view to simplify, rationalise, contextualise, clarify, and update," the SEBI chief assured.</p>.<p>Pandey also said that directors and senior management at companies must strengthen their capacity in critical domains like cyber risk, behavioural science, data ethics, and sustainability.</p>.<p>"The complexity of today's market demands informed judgement, not ceremonial oversight," he said. </p>
<p>Mumbai: Amid concerns over high valuations in recent IPOs, SEBI chairman Tuhin Kanta Pandey on Thursday made it clear that the capital markets regulator will not intervene in the aspect.</p>.<p>"We don't determine what the valuation is. This is (in) the eyes of the beholder, the investor," Pandey told reporters on the sidelines of an event here.</p>.SEBI revises block deal norms, raises minimum size.<p>In the comments that come days after concerns have been raised on Lenskart's Rs 7,200-crore initial public offering being priced at a very high level, Pandey made it clear that SEBI cannot intervene on this aspect, pointing out that the market should freely determine the pricing depending on the opportunities.</p>.<p>In the past as well, valuation concerns have been raised by many stakeholders, especially in cases of new-age or digital companies like Nykaa or Paytm's IPOs as well.</p>.<p>Meanwhile, speaking at the event organised by Excellence Enablers, Pandey asked for companies to be more "authentic" on their environment, social and governance (ESG) commitments.</p>.<p>"ESG must be authentic, not a branding exercise," he said, adding that it must be tied to measurable outcomes, subject to independent assurance, and anchored in genuine board oversight.</p>.<p>Making it clear that ESG is no longer optional, Pandey said a business has to turn regulations into an advantage and not an obligation which needs to be complied with.</p>.<p>There is a need to "institutionalise ethics", starting with boards adopting governance scorecards that track cultural health with the same seriousness as they track revenue and return ratios.</p>.<p>"Boards must view culture as an asset that needs to be monitored, measured, and nurtured," he said, adding that some companies are tracking indicators like employee feedback and whistleblower activity.</p>.<p>The company boards must oversee not just financial risks, but data ethics, cyber resilience, and algorithmic fairness, he added.</p>.<p>Companies can have standing ethics committees at the board level, which can act as an early warning system, he said.</p>.<p>Pandey said from a regulatory perspective, there is a need to contain "regulatory overreach" and promoting innovation and accountability.</p>.<p>"We will review several regulations in consultation with industry and investors, with a view to simplify, rationalise, contextualise, clarify, and update," the SEBI chief assured.</p>.<p>Pandey also said that directors and senior management at companies must strengthen their capacity in critical domains like cyber risk, behavioural science, data ethics, and sustainability.</p>.<p>"The complexity of today's market demands informed judgement, not ceremonial oversight," he said. </p>