Financial Daily from THE HINDU group of publications
Monday, May 01, 2006
Financial Daily from THE HINDU group of publications Monday, May 01, 2006 |
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Opinion
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Letters Quota for retail
This is with reference to the editorial, "Abuse of a quota" (Business Line, April 29): SEBI has taken right steps for misuse of the quota offered to the retail sector in the IPO. Indeed, the regulator has taken this challenge with the intention of protecting the investors' interest, particularly in the retail segment. The retail investor may be able to participate in the secondary market along with the institutional investors. But the availability of stocks in this market is judged by the demand and supply of prices, whereas the availability of stocks in the primary market depends entirely on the allotment pattern, which again depends on the quantity applied for. Where the institutional buyers need not remit full money on application, the retail investors have to do so at the time of application. So there is no point in removing the incentive of retail quota to check the misuse. The misuse could be addressed by tightening the surveillance measures by regulator. C. P. Velayudhan Nair Kochi
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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