IPO problem starts when banker, issuer cross boundary
SAT presiding officer
This story was originally published at 11:58 IST on 23 September 2026
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--SAT presiding officer: Merchant bankers important intermediary for issuers
--CONTEXT: Securities Appellate Tribunal presiding officer Kumar at event
--SAT presiding officer: Issuers which seek money must comply with all norms
--SAT presiding officer: Would prefer if no problematic IPO case comes to us
--SAT presiding officer: Merchant bankers must guide cos within framework
MUMBAI – In the case of initial public offerings, a problem starts only if the investment banker and the issuer crosses the "Lakshman Rekha", and can then potentially land with the Securities and Exchange Board of India and Securities Appellate Tribunal, the tribunal's presiding officer Justice P.S. Dinesh Kumar said Wednesday. "There should be a situation that not even one case (of irregularity in IPO) comes to the regulator (SEBI) or higher (SAT)," he said.
Speaking at a capital markets conference organised by the Association of Investment Bankers of India, Kumar said companies which seek money from primary market issuances must comply with all regulatory aspects. The investment bankers must evaluate the fundamentals of the issuers and guide their clients within the framework of the law, he said.
Presiding officer of the Securities Appellate Tribunal Kumar said the money of investors gets paid to the issuers and, therefore, the manner in which the issue is evaluated and issuer advised by the investment bankers "is the most essential". Investment bankers offer a very important intermediation between companies which need capital and the investors, he said.
Speaking at the same event, Association of Investment Bankers of India Chairman Mahavir Lunawat said the IPOs are seeing an upsurge in both the number of investors and new investor categories such as family offices and alternative investment funds. The new investor categories "are now looking at participating in the primary market in large numbers and one of the most important contributory factors is the returns IPOs are giving," Lunawat said. End
Reported by Rajesh Gajra and Anand JC
Edited by Akul Nishant Akhoury
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