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Sep 02, 2014
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Sebi rule a hurdle in retail participation
The Securities and Exchange Board of India (Sebi)’s move to safeguard small investors in initial public offerings (IPOs) of non-profitable companies is proving a hurdle to greater retail participation. For public issues of companies that didn’t have a three-year ‘profitability’ track record, a change in norms by Sebi in 2012 had lowered the retail investor quota from 35 per cent to 10 per cent of the issue size. The move, aimed at protecting retail investors — those investing up to Rs 2 lakh — from IPOs of loss-making companies, limited the participation of small investors in some successful IPOs, such as those of Just Dial and Snowman Logistics.
Source -
http://www.business-standard.com
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