Region based investors took up the issue of overpriced IPOs with SEBI Chief

Northern Region-based investors who already burnt their fingers in the securities market due to overpriced IPO’s took up the issue with the SEBI chairman, U K Sinha in an awareness seminar organised by The Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and CNBC TV18. 

 

It is worth noting that the seminar was organised to disseminate awareness among the masses, about what precautions to take while investing in non-banking finance companies, including, chit funds, multi level marketing companies etc.

 

Investors raised their concerns over the lack of background checks on the companies who hit the capital market with overpriced IPO’S. An investor, Madan Chopra complained that he had made several complaints to SEBI regarding a top Indian firm, whose IPO was overpriced and subsequently the share prices fell sharply later, causing huge losses to the investors.

 

Furthermore, Investors complained to the Sinha about the poor redressal of their complaints made to SEBI. Sinha, while redressing the grievances of the investors, said that the mandate of SEBI is three fold- protection of the interests of the investor in securities; regulation of securities market; and, development of the securities market. “ For promoting a balanced pan- India securities market and to bring physical proximity of SEBI officers to investors and intermediaries, SEBI has decided to open its local offices in various parts of the country.

 

However, he refused to talk to the Media after the seminar.