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| Last week there were news reports that the Securities and Exchange Board of India (Sebi) is planning to introduce mandatory rating of initial public offerings (IPO), a service not available on any bourse across the world. |
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| The proposed rating will cover promoters, management record and past performance and will stay clear of making any comments on the pricing of issues. |
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| Companies may be asked to disclose the ratings in the prospectus or the offer document. The regulator's move aims to fill the lacunae in the current IPO process by assessing companies that are in the early stages of existence. We get two experts to debate on whether equity rating should be made mandatory. |
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A powerful guidance tool
Sebi
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