BSE introduces AI tool to speed up SME IPO document checks

Synopsis

To enhance the SME listing process, BSE has rolled out an AI-powered tool that pre-screens draft IPO documents. The system helps merchant bankers identify compliance gaps early, significantly reducing review time. While not a replacement for BSE’s final check, it improves efficiency and accuracy in the IPO filing workflow.

BSE has launched a new generative AI tool to help speed up the initial checking process of SME IPO documents. Right now, vetting these documents can take several days or even weeks — but with this new tool, experts say the process could be reduced to just 30–40 minutes.

As per a recent circular, merchant bankers — who handle IPO filings — will be given access to a special folder where they can upload draft IPO documents. The AI tool will scan the draft and highlight any sections that need improvement or corrections before final submission.

"This tool is meant to improve the SME listing experience," said BSE. The AI tool will be accessed through a secure file transfer system (SFTP) and will serve as a pre-check mechanism, helping bankers make the draft more compliant before officially filing it with the exchange.

Since its inception, the BSE SME platform has listed around 600 companies and helped raise nearly Rs 9,500 crore. The combined market value of these listed SMEs is over Rs 68,500 crore.

If you include companies that have shifted from SME to the main board, the total jumps to about Rs 1.73 lakh crore. Around 200 firms have made that move so far.

Makarand Joshi, founder of MMJC and Associates, called the move a “progressive shift.” He said that while document vetting usually took a week, this AI tool could do it in under an hour. However, this facility is just for initial advice. The BSE will still review the final filing in full before giving official approval.

Also read: Sebi proposes 5-point AI rulebook for securities market. Check details

This AI tool won’t replace BSE’s review, but it will help merchant bankers catch and fix issues earlier — making the IPO filing process smoother and faster.

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