Investment Bankers need to be more accountable now.

Many investors have burnt their fingers by putting their hard-earned money in shady Initial Public Offerings (IPOs) which are often subject to manipulation by investment bankers and promoters. As a result of this, the investor confidence has been on a downward spiral. In a recent probe, the Security And Exchange Board Of Indian (SEBI) has actually found out that cases where proceeds from the IPO were either misused or diverted.
To make sure that such cases don't recur, the market regulator is planning to tighten the noose around investment bankers. The job of investment bankers may not get over once the company gets listed on the stock exchanges. SEBI is planning to make the book running lead managers (BRLMs) managing the IPO responsible for the end-use of the proceeds. Chances are that the investment bankers may have to submit a quarterly report to SEBI on the status of the proceeds for a period of up to one year after raising the funds. I give a thumbs up to this important move. It will certainly make promoters and investment bankers think twice before taking investors for granted.