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| Updated on February 18, 2021 Published on February 18, 2021

Of IPOs and premiums

Generally, during a bull market, we observe several companies approaching the public with highly priced IPOs.

Promoters of such companies wait eagerly for such opportunities so that they can pocket crores of money. Most of these issues are over priced.

Obviously such issues get oversubscribed several times due the prevailing euphoria in the secondary market and also by way of hefty grey market premia. Listing prices also get jacked up due the heavy oversubscription.

After a few months, the stock proces od such companies tend to drop sharply. In the process, it is the hapless retail investors who lose their hard earned money and burn their fingers badly. SEBI should put a check on companies dictating such exorbitant premiums.

BN Bharath


Covid curve

India has managed to flatten the Covid curve, a creditable feat considering high density of population and gaping holes in our public health infrastructure, but we must not lower our guard. A spike in cases in Maharashtra after a brief lull and Kerala's persistent battle to contain the spread of the virus has underscored the need for people to follow the Covid- 19 protocols. With the UK and South African variants of Coronavirus being reported from different parts of the country, both the government and the people cannot afford to drop the guard. The much awaited vaccination programme has been rolled out across the country, but there is a discernible vaccine - hesitancy among people. Under these circumstances, we must stay vigilant and meticulously follow the Covid protocols.

M Jeyaram

Sholavandan (TN)

Oil blues

Apropos to the news report ‘With rising auto fuel prices, Centre and Opposition take a dig at each other’ ( February 18), it goes without saying that with the Centre blatantly refusing to reduce the prevailing Central Excise Duty, thereby making any 'dent' in its own revenue kitty and the state govts also unwilling to offer any cut in their local VAT, the end-users are virtually left with the no choice except to live with the high prices. The petrol price has already crossed ₹100 per litre mark in Rajasthan’s Sriganganagar, with Mumbai coming a close second. Ironically, even when the prices of the crude oil was unimaginatively pegged at $120 per barrel in 2013, retail petrol prices were capped at ₹76 per litre but with the global Brent Crude prices now being around $63.6 per barrel, the petrol price has already scored its “maiden century” in the Congress-ruled Rajasthan.

In these circumstances it is indeed surprising to see our Petroleum Minister blaming international fuel prices for the price spike in India.

Vinayak G


Review this nebulous rule

One has been receiving several mails and messages from mutual fund AMCs and registrar intimating about the applicability from February 1 of the new SEBI rule for NAV applicability.

This states in effect that units will be allotted at NAV of the date when funds become ‘available for use’ by the fund house.

This is a rather nebulous position. Small retail investors have no way to demand and get to know from AMCs when funds transferred by an investor became available for use.

In one case, for funds debited from an account for an SIP through AutoPay, units were not allotted even after two working days.

What does an investor do in such a situation?

SEBI must review this rule.

V Vijaykumar


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Published on February 18, 2021
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