Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey’s comments come days after concerns have been raised on Lenskart’s ₹7,200-crore IPO being priced at a very high level. He made it clear that SEBI cannot intervene on this aspect, pointing out that the market should freely determine the pricing depending on the opportunities. | Photo Credit: PTI Photo/Shashank Parade
“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.
In the comments that come days after concerns have been raised on Lenskart’s ₹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.
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.
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.
“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.
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.
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.
“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.
The company boards must oversee not just financial risks, but data ethics, cyber resilience, and algorithmic fairness, he added.
Companies can have standing ethics committees at the board level, which can act as an early warning system, he said.
Pandey said from a regulatory perspective, there is a need to contain “regulatory overreach” and promoting innovation and accountability.
“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.
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.
“The complexity of today’s market demands informed judgement, not ceremonial oversight,” he said.
Published on November 6, 2025
