With the country’s primary market seeing a record uptrend in four years, the Securities and Exchange Board of India (SEBI) Chairman U. K. Sinha on Tuesday said the market regulator does not need to “ration” the number of initial public offers (IPOs)
“There are certain countries that do some sort of a rationing for IPOs and I think they have disastrous consequences. India does not do that,” he said.“We don’t impose such limits on IPOs so that the secondary market can grow,” he said, adding that companies go for public issues based on macro economic conditions.
Recognising that primary market is in an upbeat mood, Mr. Sinha observed that the number of IPOs this fiscal has already surpassed those in the previous years.
“During 2011-13, Rs.16,000 crore worth of draft red herring prospectuses were filed with SEBI and then they lapsed. Today, that is not the case. Today larger number of corporates are coming,” he said.
“Our job is to ensure that correct disclosures are made and I think we have deep vibrant market and all FPIs and large funds are registered so we don’t need rationing of IPOs,” he noted. — PTI
