SEBI ALLOWS ‘CREATIVITY
AND INNOVATION’ IN IPO ADVERTISEMENTS
In
an attempt to liven up the primary stock market, the market regulator SEBI has
decided to allow companies to use creativity and innovative advertisements, of
course with the necessary disclosures and information as mandated.
Since,
the 2010 Coal India IPO, there has been not meaningful IPO in Indian markets.
The primary market has been languishing; no wonder why it is so; as the secondary
market is also in doldrums amidst the exodus of retail investors. It has been
the foreign institutional investors who have been holding the market at near
lifetime highs and keep it going; is a harsh fact of the time.
The Indian IPO market has been sluggish
for almost three years and IPO proposals worth Rs 72,000 crore are yet to hit
the market despite having got regulatory clearance.
Among various reforms, Sebi has
introduced an e-IPO mechanism
through which investments can be done
online without signing any physical documents. This has helped fast-track
the public offer processing time.
On account of streamlining of process
and other external factors, the average time taken for processing offer
documents has also come down from 152 days to 48 days.
Besides, a facility to procure and
submit IPO forms is now available to investors in more than 1,000 locations, as
SEBI has allowed use of stock broker network of stock exchanges for submitting
applications.
The investors are also now directly
able to submit ASBA (Amount Supported by
Blocked Amount) applications in more than 67,000 bank branches as against
less than 10,000 branches that existed earlier.
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