SEBI has proposed to reduce post public issue processing time and cost by introducing the concept of e-IPOs which will facilitate investors submit their Initial Public offer (IPO) application form online through the stock exchange platform without requiring to sign any document physically. Stock brokers will have to use the National Automated Clearing System (NACS) implemented by the National Payments Corporation of India (NCPI), as there will be high volume of banking transactions that too repetitive in nature.
Comments:
The proposal is very supportive from the point of view of investors as the government has been trying to channelize the savings of individuals in the securities market. After launch of Rajiv Gandhi Equity Savings Scheme in 2012 this is another step for encouraging investors to invest in domestic securities markets. One thing that SEBI has to ensure is the protection of investors in the process i.e. reckless bidding by multiple investors should not be resulting in benefitting a small chunk of people and hence defeating the main objective of Securities Exchange Board of India. There must be formulation of acceptable procedures manual for online application of e-IPOs before implementation of the same.
The proposal is very supportive from the point of view of investors as the government has been trying to channelize the savings of individuals in the securities market. After launch of Rajiv Gandhi Equity Savings Scheme in 2012 this is another step for encouraging investors to invest in domestic securities markets. One thing that SEBI has to ensure is the protection of investors in the process i.e. reckless bidding by multiple investors should not be resulting in benefitting a small chunk of people and hence defeating the main objective of Securities Exchange Board of India. There must be formulation of acceptable procedures manual for online application of e-IPOs before implementation of the same.
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