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Investors may be able to retain IPO subscription

The nation's market regulator hopes to allow investors to hold subscription amounts for initial share offerings in their bank accounts.
Reuters | By HT Correspondent, Mumbai
UPDATED ON APR 08, 2008 12:10 PM IST

India's market regulator hopes to allow investors to hold subscription amounts for initial share offerings in their bank accounts until allotment to cut the time between the stock sale and listing, a senior official said.

The Securities & Exchange Board of India hopes to take a decision in the next three months, CB Bhave, chairman of the regulator told reporters at a seminar on initial public offerings (IPO).

"It is our belief that with the present technology availasble it is possible to earmark the amount in the investor account itself and not have the money actually transferred," he said.

"For this we need to talk to different players involved to see that it is operationalised intially on a voluntary basis and so keep both options open and slowly push it," he added.

Bhave said last month the board will review the IPO process to reduce the time between the sale and listing and make the it more efficient.

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