"We are in the process of reforming IPO process which will ensure that much safer process and volatility in the initial days of listing is much less ... we are looking into every aspect," said SEBI whole-time member Rajeev Agarwal.
The move comes in line with the cases that were reported to misuse the existing IPO norms.
The regulator barred seven companies from raising money from the public for suspected misuse of proceeds from IPOs, pricing irregularities and inadequate disclosure of information, last month.
It also barred six investment bankers from managing any more share sales for alleged failure of due diligence in overseeing the IPOs.
Meanwhile, talking about the need to improve the investment in the capital markets, SEBI opined that the industry is required to focus more on the savings into capital markets to fund capital requirements of various sectors.
Currently, only 4.6 percent of national savings are invested in capital markets.
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