The Indian Stock Exchange has been at number seven in terms of launching new IPOs in 2021.
SEBI Chairman Ajay Tyagi has expressed concern over the tendency of recently listed internet companies to use IPOs to give an exit to existing investors. He has said that SEBI will soon bring a new rule for listing of new-age companies.
‘Tech companies creating regulatory challenges for SEBI’
Tyagi said, “Recently a new trend has been shown in new-age tech companies. These companies, called growth companies, are constantly coming up with IPOs. These companies are doing both. One, these companies are entering the capital market for capital to strengthen their growth, but they are also giving existing investors a way out of the company. These non-traditional companies are creating regulatory challenges in addition to SEBI.
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Retail investors increased seven times compared to last year
Tyagi said that the participation of retail investors in the market has increased seven times to 5.43 crore in November this year (2021) as compared to November last year. The Indian Stock Exchange has been at number seven in terms of launching new IPOs in 2021. This year the market saw many technology companies launching their IPOs. These include companies like Paytm, Zomato, Nykaa and Policybazaar. Oyo and Snapdeal are also filing for IPO. Zomato’s blockbuster listing has drawn the attention of the whole world towards the Indian IPO market.
Tyagi has told merchant bankers that the focus should be on correct pricing in public issues. He advised the merchant banker community to follow the rules at the level of emotion along with words.
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