The IPO market is on a death bed. Hardly any company is tapping the primary market to raise money. So, in order to revive the same SEBI has decided to introduce a slew of measures. These include having reservation and discount for retail investors in Offer for Sale (OFS) mechanism as well as hiking the minimum public shareholding for PSUs. Reservation for retail investors in OFS will increase their participation, while the increase in PSU float to 25% (from 10% currently) will attract investor interest.
While these measures are likely to give a new life to the dormant primary market, we feel that along with such steps, the market watchdog must also tighten its screws over issues ranging from price rigging to market manipulation.If SEBI tightens its screws on regulatory matters, the confidence of investors in the markets would increase. And this would lead to increased retail participation in equity markets.
While these measures are likely to give a new life to the dormant primary market, we feel that along with such steps, the market watchdog must also tighten its screws over issues ranging from price rigging to market manipulation.If SEBI tightens its screws on regulatory matters, the confidence of investors in the markets would increase. And this would lead to increased retail participation in equity markets.
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