Transparent IPO Allotment process
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While share of equities in household savings has been increasing in India (a shift after a long time from Gold/Property), the share is still considerably low in India when compared to developed market.
IPO market in India is very hot with many blockbuster IPOs seen since 2015 (not to forget the fresh listing of DMart giving more than 300% returns on listing). Small retail investors (particularly the middle class white collar workforce) are entering the primary market and secondary market after proper due diligence.
After taking several steps and efforts - when retail investors enter the market for IPO they don't get allotment, neither they are informed about the process.
People are using different PANs, Different Accounts to apply to increase their probability of allotment - which is unfair in a way to people who have limited capital and/or a/c.
We believe, if we have to increase the penetration of capital market in India, retail investors' should be encourage. All retail investors' should get some share (even if it is as low as 10% of the minimum lot size) as this would encourage people to keep applying and investing. It is found - When two people applying same no. of shares on same date and time - one is getting full allotment while the other is getting NIL and no one is there to provide clarity on this. Despite application on the first hour at 9 am - people are not getting allotment.
Thus, it is humble request to the Chairman of SEBI to kindly frame policies for safeguarding interest of retail investors' if penetration of capital market has to increase. Indian households has huge chunk of cash and gold (after demonetisation even) which can find its way to capital market if the trust on regulator is there and if process is transparent
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