Wednesday, 11 January 2017

SEBI to review allotment norms for retail investors in IPOs


The SEBI-appointed Primary Market Advisory Committee will review the basis of allocation for retail investors in initial public offers when it meets on January 16. The current rule, operational since October 2012, ensures that all retail applicants are allotted at least the minimum application size, subject to availability of shares in the aggregate. 

If there are an inadequate number of shares to ensure this, then allotment is done through lottery. The remaining shares for retail investors are allotted on a proportionate basis.

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