Monday, January 16, 2012

SEBI to reform IPO norms to check volatility on listing day

Capital markets regulator SEBI on Thursday said it is in the process of reforming the initial public offer (IPO) norms to ensure minimum price volatility on the day of listing. "We are in the process of reforming IPO process which will ensure that much safer process and volatility in the initial days of listing is much less ... we are looking into every aspect," Securities and Exchange Board of India (SEBI) whole-time member Rajeev Agarwal said. "Our aim is that the volatility in the IPOs should not be there, particularly on the listing day," he said on the sidelines of an Assocham event here. He also said that the disclosure norms should be such that investors should not lose money. Last month, SEBI barred seven companies from raising money from the public for suspected misuse of proceeds from IPOs, pricing irregularities and inadequate disclosure of information.
Source: Economic Times

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