SEBI mulls rules to tame erring merchant bankers


New Delhi: Market watchdog SEBI is mulling over ways to rein in erring merchant bankers regarding overpricing of IPOs and hyping public issues through misleading advertisements and media reports outside the regulatory ambit. The regulator is actively considering bringing out soon a discussion paper on the matter, wherein it would seek public comments on draft regulations to curb the menace of overpricing and hyping public offers, sources close to the development said. The issue is likely to be discussed in the SEBI board meeting scheduled for tomorrow and thereafter the regulator might soon issue the draft guidelines for public comments, sources said. Sources said that the SEBI could propose stringent actions against the erring bankers with regard to overpricing, unnecessary hype and violations of a standard code of conduct and business ethics, which would be detailed out in the discussion paper, they added.
Source: PTI