Vol. 1, Issue 12 (2016)
Indian IPO market strengthening through reforms: A review
Author(s): Samarth Pande
Abstract: Indian capital market is an emerging financial market which is constantly endeavoring to evolve as one of the Asia’s most developed markets. In this regard, the Indian capital market regulator, SEBI (Securities and exchange board of India), ever since 1992, has been actively contributing with stream of rules, regulations and reforms to help Indian capital market grow and develop in a regulated manner, in alignment with economic development goals of the nation. One of the main constituent of capital market is Primary market, where securities are issued by companies, public and private sectors, for the first time to raise capital from public for investment in productive ventures, thus mobilizes the investible surplus in the economy and helps in capital formation. The primary securities market has four major modes, IPO (Initial Public Offer), FPO (Follow up Public Offer), Rights Issue and Debt Issue. In this paper reforms related to only IPO market has been dealt with. Efforts are being made to track the reforms in primary market (IPO segment) brought by SEBI, starting from the year 2008-09, the year of global economic meltdown, which caused a crash in the stock markets world over. For this purpose the annual reports of SEBI have been downloaded from its official website and a careful study has been conducted to track the reforms. The paper highlights some of the major reforms brought in the IPO market segment related to the issue process, investor protection, disclosure norms and transparency, intermediaries functioning, rationalizing time period involved, etc.