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The stock market regulator has directed that no person connected with a public issue of debt securities (including distribution of the issue) shall pass on incentives in cash, kind, services or otherwise to any person making an application for allotment of the securities.
This has been done to prevent intermediaries from gaining an unfair advantage, prevent a certain set of investors from having unfair bargaining power and prevent an increase in the costs for the issuing company.
Nothing contained in this circular shall apply to fees or commission for services rendered in relation to the issue, said SEBI.
Stock exchanges have been directed to inform all their members and disseminate this information on their respective Web sites.
Raghavendrarao.k@thehindu.co.in
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