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videos | IST

SEBI tightens IPO, preferential issue rules: Experts discuss

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Securities and Exchange Board of India (SEBI) has come out with a bunch of rules forcing unlisted companies to disclose the reason for raising money more precisely. Vivek Toshniwal of Axis Capital and Rajeev Shah of RBSA Advisors shared their perspective on the same.

The year 2021 saw some unforgettable performances in the primary issues market with a bunch of digital companies and old-world companies getting listed. However, for every Zomato and Nykaa, there were listings like CarTrade.Com and Paytm and Fino Payments Bank that did badly on listing. Fearing that too many young promoters are too eager to cash in on bullish investors sentiment, Securities and Exchange Board of India (SEBI) has come out with a bunch of rules forcing unlisted companies to disclose the reason for raising money more precisely. It has forced exiting shareholders to continue to have more skin in the game. So that they too are not too eager to cash out when the going is good. However, with every rule comes a restriction. Vivek Toshniwal of Axis Capital and Rajeev Shah of RBSA Advisors discussed how good these rules are.
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For the full interview, watch the accompanying video.