Time-frame to return money to rejected applicants of IPO in offing

Published: Friday, May 2, 2008, 21:32 [IST]
 

Mumbai, May 2 (UNI) Securities and Excange Board (SEBI) Chairman C D Bhave today said adherence to a definite time-frame should be observed by the companies raising funds from primary capital market to return money to those whose applications for subscribing Initial Public Offer (IPO) were rejected.

Inaugurating an investor education initiative, Money Yatra, jointly launched by a business television news channel, CNBC AWAAJ and Reliance Money in collaboration with National Stock Exchange and the Department of Posts, Mr Bhave said the SEBI was currently working on certain guidelines in this regard.

The guidelines shall also address the need to lay down a time-frame for registering the names of allotees of shares under the IPO in a demutualised account in a bank in a faster way, he said.

Lauding the efforts of Money Yatra initiative that is to travel across the country to more than 30 towns, Mr Bhave, however, said investor education initiative in the country should be multilingual as two-thirds of the population speak and understand only Indian languages.

''It would be important to create a data bank and analyse the questions and queries received at the forum to pinpoint on the fears and difficulties faced by investors,'' said Mr Bhave.

He said the data bank could also locate the areas where investors lacked knowledge and be indicators to faults and shortcomings within the stock market system itself.

According to the organisers of Money Yatra, under this initiative India's leading personal finance experts will educate the common man on the various avenues of financial planning and money management.

Under the initiative, investment experts will provide the necessary information and advice on financial planning, investment techniques and procedures to individuals and private investors.

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