Even as the primary markets remain muted with just six companies launching public offers so far in FY20, SEBI Chairman Ajay Tyagi on Thursday said that the fundraising activity through IPO or debt needs to pick up.
Even as the primary markets remain muted with just six companies launching public offers so far in FY20, SEBI Chairman Ajay Tyagi on Thursday said that the fundraising activity through IPO or debt needs to pick up. It comes as several public issues approved by SEBI could not be launched due to ongoing volatile market conditions. Even the secondary market needs to develop more in terms of depth, he also said at a FICCI event. Of the 39 IPOs waiting for SEBI nod, one-year deadline will expire by December 31 for 21 issues, data available with PRIME Database showed.
Speaking further, Ajay Tyagi said that the equity raising this year has been nearly Rs 1.4 lakh crore. The corporate bond market needs wider set of issues and investors and should ensure wider retail participation in the bond market, he added. The govt has taken several measures to strengthen the bond market, he noted.
On mutual funds, he said that all MFs have to follow the existing regulations. SEBI regulations do not allow any form of standstill agreement and SEBI has made its position clear on standstill agreement, he added. The companies have to follow the agreement, SEBI Chairman further said.
Meanwhile, the stock markets have remained volatile lately.The one-year return for Sensex surged to 7 per cent currently after falling half-a-per cent last week. After 2-day record rise, the investor wealth declined on Wednesday by nearly Rs 2 lakh crore on Wednesday following heavy losses in the stock market. The market capitalisation of BSE-listed companies dropped by Rs 1,84,483.79 crore to Rs 1,46,88,763.39 crore, owing to heavy sell offs in the equity market as investors booked profits.