-
ALSO READ
Index weighting conundrum: Mutual fund industry knock on Sebi's door
Sebi concessions fail to lift IPO market, firms shelve listing plans
Interesting nudge from Sebi with takeovers
Sebi tightens grip on board composition at market infra institutions
Sebi notifies new regulations for registered investment advisers
-
Markets regulator Securities and Exchange Board of India (Sebi) has directed investment bankers and other entities involved in primary market issuances to refrain from sharing bidding data directly to investors.
It is a fairly common practice for investment banks to share application/bidding data for IPOs, OFS, rights issue, and delisting offers with investors on an hourly basis.
The regulator has said investment banks should direct investors to original sources such as stock exchanges, where data is publicly available.
Sebi said the public information helps prevent information asymmetry, while information shared by investment banks could be selective and may create prejudice in the minds of some investors.
ALSO READ: Airtel foreign ownership puzzle stumps investors again, stock sheds gains
“In order to avoid any kind of misinformation or lag between sending the information by the broker or merchant banker and receipt of such information by the investor, the seller broker or merchant banker may direct the investors, clients to publically available sources,” the regulator has said in an informal guidance, which is an interpretation of the law.
Referring to regulations, Sebi said no advertisement should be released during the course of a particular issue, which indicates whether an issue is subscribed or oversubscribed or even the investor response to the issue.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU