This refers to Pratip Kar’s column “Fault lines in the Indian IPO market” (Capital concerns, January 9). The author is absolutely right to point out the confusion over the role of various participants in the initial public offer (IPO) market. The Securities and Exchange Board of India (Sebi) has not done much about malpractices committed during the IPO process. The price fixation of shares is still a contentious issue and has defied a just solution. I believe investors, particularly small investors, have suffered losses because IPOs have been over-priced. Therefore, even as we welcome Sebi’s actions to tackle other lapses, it is necessary to take note of this vexed issue of over-pricing that needs a permanent solution.
Narendra M Apte Pune
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