Mumbai: The Indian market regulator plans to request a new technology company to justify the share price for their initial public offer to ensure transparency after the crisis in some of these companies erode billions of dollars in the wealth of investors.

The discussion paper issued on Friday by the Securities and Exchange Board of India (SEBI) has set March 5 as a deadline for the public to submit their comments. Shares of several new technology companies such as Paytm and Zomato have fallen since their list.

Regulators want new technology companies to explain in detail how they justify their shares for the initial public offering (IPO), compare it with the sale of pre-IPO shares and publish all pre-IPO investors’ presentations to help investors make decisions.