"Investment bankers need to introspect whether their behavior challenges the entire merit-based versus price discovery mechanism or not. We need some amount of sanity in pricing and initial public offering (IPO) disclosures," he said.
He also pointed out that at least two-thirds of the issues between 2009 and 2012 were trading below market decline levels.
"Call auction data show that volatility on opening day have reduced considerably," said Sinha. "SEBI has noticed in some IPOs that due diligence wasn't done properly."