When a small motorcycle showroom decided to go for an IPO to raise Rs 12 crore, it attracted bids of nearly Rs 4,800 core! What is causing this “irrational exuberance” among retail investors in an overpriced Indian market?
After noticing numerous flaws in the IPO pricing method, the Securities and Exchange Board of India (SEBI) set up a specialist panel to finetune it. Up to now, Rs 42,000 crore has been raised through 28 IPOs.
The RBI proposes tighter rules for NBFCs and wants them classified into four categories. This is crucial for fiscal steadiness and to bring back confidence and will ensure that larger players will be screened just like banks.