New SEBI framework to contour IPO method.
· Markets regulator Sebi on weekday place in situ a regular policy to contour the reconciliation method among intermediaries with reference to initial public offers in addition as a brand new mechanism to compensate investors.
· The new framework would address problems associated with delay in receipt of mandate by investors for interference of funds because of general problems at intermediaries and failure to unblock the funds in cases of partial allotment by subsequent operating day from the mop up of Basis of Allotment (BOA), Sebi aforesaid during a circular.
Initial Public providing
· IPO is that the commerce of securities to the general public within the primary market.
· Primary market deals with new securities being issued for the primary time. its conjointly referred to as the new problems market.
· It is totally different from secondary market wherever existing securities square measure bought and sold-out.
· It is additionally referred to as the stock exchange or exchange.
· It is once AN unlisted company makes either a contemporary issue of securities or a suggestion purchasable of its existing securities or each for the primary time to the general public.
· Unlisted corporations square measure corporations that dont seem to be listed on the exchange.
· It is mostly employed by new and medium-sized corporations that square measure searching for funds to grow and expand their business.