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Monday, Dec 18, 2006
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Opinion - Letters
Stock lending mechanism

This is with reference to "SEBI to launch new stock lending mechanism" (Business Line, December 17). The grading of IPOs as recommended by the advisory committee will help retail investors in a big way. Of late, SEBI has played a very vital role in creating investor confidence through tough and transparent steps. In every IPO, retail investors face the problem of pricing and quality. And the grading is likely to address both issues.

Introduction of e-filing of disclosures and announcements would make the system of marketing and corporate governance more transparent and investor-friendly. But, here again, the regulator should not confine itself to making the system optional and the details made available should be closely checked. The review system of the orders of SEBI should be speeded up.

The present system of stock-lending process which causes occasional selling pressure for want of suitable lending mechanism, needs revision.

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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