The new ordeal favors the non promoters to sell their stake through OFS which indirectly involves an auction of shares on stock exchanges in a specific duration of market hours.

A financial planner Rishi Nathany says: "The cost for the retail investor will be 0.25 per cent that the investor will pay to the broker. Importantly, the deal will be struck within a day or two. On the other hand, if the retail investor would have applied through the FPO route, he would have to keep the money locked in the bank for 15 days."

V K Sharma, head of private wealth, HDFC Securities, says “While this is a good thing for the public, investment bankers might not be too happy because a high allocation for anchor investors will limit their ability to get big investors into the issue.”

Now the question arises should the retail investor be kept protected as when they are participating in equities, ideally they are dependent on the company’s future or fate. The question remains whether the retail investor who invests in small companies needs to be protected, as ideally, when they are participating in equities; they are linking themselves to the fate of the firm. By providing safety will make them confident, it is advisable to such investors to stay far away from such stocks.

SEBI takes a leap forward in the process with the introduction of ‘Know Your Customer’ (KYC) data with other regulators; another important SEBI move is to start sharing the know-your-customer (KYC) data with other regulators. KYC is a process used to identify the genuine consultants, distributors or any kind of agents.