SEBI had some time ago discussed the proposal of asking merchant bankers to give their views on giving track record in past issues at the time of an IPO. Not much has happened and now SEBI has asked the association of Merchant Bankers to come up with a code of conduct or self-regulation or SEBI would be forced to take suitable action.

The concept behind this is the number of issues which are aggressively priced, over hyped and result in huge losses for investors post listing. Once the track record of a merchant banker is published as part of the RHP in an issue going public, it would become more difficult to hide the facts and people/investors would become aware of what happened in previous issues.

In continuation of this over pricing, there is also a move to reconsider whether as part of the listing day the circuit limits which are kept open should continue or be reduced. This point needs to be reconsidered and decided in the greater interest of investors and the capital market.

I believe these would be steps in the right direction and would make markets better manged.