Both SEBI and the Chairman of SEBI deserves congratulations for initiating this bold and important move to streamline the IPO process,otherwise the IPO process is vulnerable to greedy promoters and market manipulators.Let us hope this move will put a check on vanishing companies.
The heading says that grading is mandatory and question 7 says that grading is not mandatory. Looks like this is on old article that has been wiped out of the dustbin
As soon as a company approaches an agency for grading, it s'd inform sebi. Now, the likely scenario is: the company approaches the rating agency, it does a rough estimation and informs the company what the likely grading is going to be. Only if the co. is satisfied, sebi is informed. If not, the company may pay the agency for the trouble and it will be hushed up.
It is a better move by SEBI. It will definitely caution the investor to stay away from the issues of poor fundamentals. In those days Controller of capital market was setting the premium. As there is no such regulation, the grading may to some extent help the investors to take a right decision, otherwise investors have to depend upon the rating of IPOs given by the journals of Capital market.
VERY GOOD EXERCISE - AT LEAST WE WILL NOT BURN OUR FINGERS - SHARES HAVE BEEN QUOTING AT DISCOUNT 0F 25-30 % AFTER LISTING THAT WILL BE PARTIALLT OR MAY BE FULLY AVOIDED NOW
