Sunday, 25 December 2011
Reviewing entire IPO process
From the Takeover Code to the initial public offering (IPO) review process, SEBI chairman UK Sinha has his plate full.Sinha says that some changes have been made to the IPO review process, but a complete review would take sometime.
He, however, added that policy action on IPO listing-day trades would be taken very soon.Sinha says, “We are looking at a review for entire IPO process, who would participate, in what manner he should participate and how to reduce the timelines."
He further says, the question about how the volatility on the listing day can be handled is also attracting the attention. "We have not yet found the causes. We hope to do it very soon.”
Sinha says, “There is a misconception in the minds of people that while SEBI has allowed FIIs, it also has allowed sub-account and participatory notes. There is a belief or suspicion that a lot of Indian money might be coming through that route. I would like to clarify the position that a very strong KYC is done whenever any participatory note is issued.”
He further says, percentage of money coming in through participatory notes has come down substantially. “If in 2007, it was 50%. My guess is it has now come down to 15-16%.”
He, however, added that policy action on IPO listing-day trades would be taken very soon.Sinha says, “We are looking at a review for entire IPO process, who would participate, in what manner he should participate and how to reduce the timelines."
Sinha says, “There is a misconception in the minds of people that while SEBI has allowed FIIs, it also has allowed sub-account and participatory notes. There is a belief or suspicion that a lot of Indian money might be coming through that route. I would like to clarify the position that a very strong KYC is done whenever any participatory note is issued.”
He further says, percentage of money coming in through participatory notes has come down substantially. “If in 2007, it was 50%. My guess is it has now come down to 15-16%.”
