IIPM EDITORIAL: Let’s simply call SEBI our favourite

Irregulator...
..rather than keeping on criticising it, eh!
One look at the bloopers that are

being committed by my favourite current punching ‘hag’, SEBI, in the recent past is perhaps enough justification for my statement above; for I keep wondering how much can one regulator get wrong? It was a few months ago that SEBI had announced its ostensibly ‘meritorious’ IPO grading system, which it claimed would play a decisive role in helping retail investors take ‘informed’ decisions. So what if no other regulator in the world had ever started such a truant IPO grading system? Let’s see where has it led our dear old IPOs – two recent examples exemplify the issue. Based on SEBI’s IPO rating diktat, Shree Ashtavinayak Cine Vision Ltd. went to one of the leading rating agencies, Crisil. Imagine its surprise when Crisil awarded it a below average grading of 2 out of 5. So what happened? The scrip listed at a premium of 18% and ended its first day with a rewarding premium of 42%. Currently, the stock is trading at a smashing Rs.378 against the issue price of Rs.160, defying SEBI’s rating logic hands down!

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