SEBI to revamp IPO process to check price manipulation | india | Hindustan Times
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SEBI to revamp IPO process to check price manipulation

india Updated: Nov 15, 2011 23:47 IST

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Market regulator the Securities and Exchange Board of India (SEBI) on Tuesday said it is looking at revamping the initial public offering (IPO) norms and putting in place a common Know Your Customer (KYC) regulation for financial sector intermediaries.

“Whenever we find instances of violation (IPO norms), we will take deterrent action. It also calls for a relook at our entire IPO process,” said UK Sinha, chairman, SEBI.

He said very soon a regulation for centralised KYC would be put into place for making the process easy.

“We have decided to have a thorough review of our risk management system as the current system is more than 10 years old,” said Sinha.

Earlier this year, SEBI had decided to introduce a new short and simple form for IPO investors for increasing retail participation in the stock markets.

In the first half of the current fiscal, 30 companies have raised fund totalling over Rs 5,000 crore through IPOs. Sources said that SEBI is considering expediting the clearance of IPO offer documents.