Fast-Track Capital: Paytm’s Vijay Shekhar Sharma Calls For IPO Reform Using CBDC

At the Global Fintech Fest 2025 in Mumbai, Paytm founder Vijay Shekhar Sharma urged regulators to overhaul India’s IPO framework by integrating Central Bank Digital Currency (CBDC) and simplifying investor communication. His remarks spotlight inefficiencies in the current system and propose tech-led solutions for faster, fairer capital access.

Reform Imperatives  
- Sharma emphasized the need to reduce the time gap between IPO opening and closing, which often leads to dramatic price swings between institutional and retail rounds  
- He proposed using CBDC for real-time settlements, arguing that digital currency-backed transactions could shrink IPO timelines to near-instant execution  
- CBDC, issued by the Reserve Bank of India, is a digital equivalent of legal tender and has already been piloted for wholesale and retail use in securities and money markets  
- Sharma’s suggestion aligns with RBI’s ongoing efforts to modernize financial infrastructure and reduce settlement risk  
- He also called for IPO disclosures to be made more accessible, recommending formats like video explainers and QR-linked presentations to help retail investors understand company fundamentals  
- During the session moderated by SEBI Whole-Time Member Amarjeet Singh, Sharma stressed that investor trust hinges on transparency and simplified communication  
- He cited Paytm’s own IPO experience in 2021, which faced criticism over valuation and disclosure clarity, as a case study for reform  
- Sharma’s comments come amid SEBI’s broader push to digitize capital markets and enhance retail participation

Industry Context  
- India’s equity markets currently operate on a T+1 settlement cycle, which, while faster than global peers, still involves multiple intermediaries  
- CBDC integration could eliminate delays, reduce counterparty risk, and improve liquidity during IPOs  
- Experts believe that real-time settlements would benefit both issuers and investors, especially in high-demand listings  
- The proposal also aligns with global trends, as regulators in the EU and UK explore blockchain-based IPO frameworks

Market Outlook  
- If adopted, Sharma’s recommendations could transform India’s IPO landscape, making it more inclusive and efficient  
- Fintech platforms may play a larger role in democratizing access to public markets through tech-enabled investor education  
- SEBI is expected to evaluate CBDC’s role in capital markets as part of its 2026 regulatory roadmap  
- The move could also attract more startups and tech firms to consider public listings

Sources: Economic Times, Moneycontrol, YourStory