Sebi chief hits out at merchant bankers
“The retail investor is thoroughly confused about what to expect from the primary market. This is a question of credibility for all of us and we have to take serious steps to restore that,” Sinha observed. The Sebi chief asserted that some introspection was required. “If we fail then despite all our efforts we will not be able to draw retail investors or even domestic institutional investors,” he said, speaking at a seminar organised by the Association of Investment Bankers of India.
Sinha said that bankers cannot always attribute the post-listing performance to the broader market fall. “We can argue that we are not responsible for the post-issue price or for the general economy. But the data is being adjusted for the decline in the market so obviously, some amount of introspection is required,” he said.
“When we started asking questions on matters like due diligence and insisted that the complete track record of the banker needs to be maintained for inspection by Sebi officials, there was huge resistance and people thought that we were trying to be too intrusive,” the Sebi
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