Retail invt will not have to pay appl money upfront
Published on Monday, July 28th, 2008 at 12:56 PMAuthor: admin (5507 Articles)
Pooja Meswani, CNBC-TV18
The regulator said the application amount will be transferred to the company only after allotment. This step will be operational on a pilot project basis from August-end. Institutional investors may have to pay 100% application amount. Currently, institutional investors pay only 10% of the application amount while retail investors pay 100% application amount upfront.
It takes a lot of time in performing the procedures of primary markets. Companies take money from investors, allot shares to some while some are not allotted. Hence, the money has to be returned to these investors who have not been allotted shares. This process takes a lot of time. We are trying to chalk out a better method where in investors money should not be taken from banks till the time it is not fixed how much shares a particular investor would be getting. And, only that much money should be taken, equaling the shares which one would be allotted, said Sebi Chairman CB Bhave.
Source : MoneyControl
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