Summary: Sebi has released two orders which will ask the National Securities Depository Ltd (NSDL) to conduct internal inquiries into systemic and procedural lapses that led to the IPO scam reaching such large proportions without being detected. Though the committee has clarified that its action is not punitive in nature, which might make one wonder what the fuss was all about, the issue is how individual responsibility –as asked by the committee- will be determined.
IPO
Recent Posts
Discretion and IPOs don’t mix well
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India’s initial public offer (IPO) market has evolved over the years, from when the issue price was set by a government body called the Controller of Capital Issues to now where investors bid in a book-built issue to determine the price. Continue Reading →
Filed under: Economy+Policy, Finance+Markets, News Analysis, Anchor Investor, IPO, Policy From the Regulators, Public Issues
IPOs get a new anchor
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Securities Exchange Board of India (Sebi) has amended the public issue guidelines on a few fronts to allow anchor investors in public issues. These are the people who will stick their neck out in an issue to take a big chunk at a predetermined price.
Here are the changes:|
Filed under: Economy+Policy, Quick News, Anchor Investor, IPO, Markets Stock Markets, Public Issues
HDFC Bank settles with Sebi in IPO case
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Sebi has issued a consent order, accepting HDFC Bank’s application to settle the case filed against it in the IPO scam. It has paid Rs 1 lakh as part of the consent procedure. The Sebi order says that it had launched an investigation into share dealings in shares issued through IPOs during 2003-05.
Filed under: Companies, Quick News, Companies Disclosures, consent order, HDFC Bank, IPO, Policy From the Regulators
IPOs: retail investors earn on float + promoters get more flexibility
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This Sebi circular was issued on August 29.
Filed under: Finance+Markets, Quick News, IPO, Markets Stock Markets, Stock markets
Reliance Power’s proposed bonus issue tries to mend fences with hurt investors
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Reliance Power is attempting to win over dejected investors, who suffered losses after investing in the company’s public offer IPO, one which attracted unprecedented subscriptions. The company’s Board will meet next Sunday to decide on a proposal to issue bonus shares or otherwise compensate shareholders who applied in the IPO.
Filed under: Companies, News Analysis, Bonus, Companies Disclosures, IPO, Markets Stock Markets, Reliance Power
SEBI makes PAN mandatory for all IPO investors
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Sebi has amended its DIP guidelines that deal with public issues. Earlier, retail investors who invested up to Rs 50,000 did not need a permanent account number (PAN). That has changed now, with all investors irrespective of application size required to quote their PAN. The move will have no major impact, since most investors would have a PAN. The move does not come as a surprise, as all mutual fund investors too have to quote PAN, from July 2, 2007 in all transactions. This closes what small gaps are there in terms of information about investors. Continue Reading →