Sebi bars investment bankers from sharing bidding data with investors

Asks them to direct investors to original source of public info

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