As part of these, it has put the onus on investment bankers to price an issue fairly to bring retail investors back.
In an interview with Business Standard, Sebi Chairman U K Sinha discusses investment advisory rules and how regulators are coming together to resolve issues.
Edited excerpts:
How do you look back at 2012?
We took some important and far-reaching steps this year.
We have incentivised mutual funds if money is collected beyond 15 cities.
Sebi is also one of the few regulators worldwide to have put in place a regulatory framework for algo and high-frequency trading.
In the primary market, we are aiming at access to a large number of investors across the country.
Second, there is a need for some pressure on pricing.
If an investment banker is not putting pressure on the promoters and the stock tanks because of the high issue price, his past track record should be known.
But should the regulator get into pricing of IPOs?
Anybody who says Sebi is deciding on pricing is wrong.
We are saying the track record of merchant bankers should be disclosed.
If somebody is coming out with a Rs 10 issue for Rs 500, there should be explanations for that.
And that information should be known to the market.
Between 2008-09 and 2011-12, only 45 of the 127 issues are trading above the issue price, while 72 have been continuously trading below it.
These 72, even if adjusted with the general decline in the Sensex, are trading
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