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Investment bankers need to follow rules on public issue pricing
December 23, 2021
SEBI chairman Ajay Tyagi said it was incumbent upon the merchant banker community to not only follow the regulations in letter but also in spirit as he emphasized that appropriate pricing is crucial for public issues. While urging merchant bankers to engage in wider consultations as for a proper balance between the issuer’s aspirations and investors interests, he also said that needless to say, SEBI will take required actions if it finds any intermediary not adhering to its mandate”.
His remarks assume significance against the backdrop of instances of prices of shares slumping steeply at the time of listing compared to the price at which they were sold in IPO.
In addition, the regulator will tweak rules for new age technology organizations, Tyagi said at the Association of Investment Bankers of India’s annual summit.
The SEBI chairman has also listed out responsibility of merchant bankers that includes protecting interest of investors, conducting business with fairness and integrity, ensuring true disclosures to investors in timely manner, so that investors are made aware of attendant risks before taking investment decision.
It is incumbent upon the merchant banker community to not only follow the regulations in letter but also in spirit.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/