IPO

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Sebi’s NSDL orders: why the fuss?

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.

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HDFC Bank settles with Sebi in IPO case

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.
 

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Reliance Power’s proposed bonus issue tries to mend fences with hurt investors

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.
 

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SEBI makes PAN mandatory for all IPO investors

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 →

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