The decision of the market regulator Sebi to allow e-IPO or electronic issuance of IPO is likely to increase retail participation and may provide momentum to the primary market, experts said today.
Prithvi Haldea, CMD of Prime Database believes the changes introduced by Sebi is not only important but is also far reaching. The e-IPOs will significantly improve the reach of IPOs and the restrictions on revision of bids will help prevent malpractices.
The Securities Exchange Board of India will meet on Thursday to decide on a wide range of reforms for the primary market.
Very soon, you will be able to invest in an initial public offer electronically. Markets regulator Securities and Exchange Board of India (SEBI) has said implementing e-IPOs is next on its agenda to revitalise the primary market.
Regulator SEBI is considering a proposal to allow the companies to sell shares through an all-electronic Initial Public Offer (e-IPO), wherein investors would be able to bid for shares electronically and without the need for signing any papers physically.