Public issue pricing crucial, must be fixed properly: SEBI Chief
Seeking to send out a strong message, SEBI Chairman Ajay Tyagi on Wednesday said it was incumbent upon the merchant banker community to not only follow the regulations in letter but also in spirit as he emphasised that appropriate pricing is crucial for public issues.
While urging merchant bankers to engage in wider consultations as for a proper balance between the issuers’ aspirations and investors’ interests, he also said “needless to say, SEBI will not shy away from taking required action if it finds any intermediary not adhering to its mandate”. His remarks assume significance against the backdrop of instances of prices of shares slumping steeply at the time of listing compared to the price at which they were sold in initial public offerings (IPOs). The regulator will also tweak rules for new-age technology companies, he said at the Association of Investment Bankers of India’s annual summit.