This refers to the article “Twenty-year setback to regulatory policy” (October 15). The “safety net” was discussed in many meeting of the Association of Merchant Bankers of India (AMBI) in which I was a director on its Board of Directors from 1994 to 2000.
The two Securities and Exchange Board of India (Sebi) nominees and representatives from public sector banks loved to talk about the provision of safety net for investors in initial public offering during the meetings of the Board. However, all representatives from the private sector showed contempt for these discussions since they were divorced from the realities of the markets.
The Sebi and public sector representatives were following the socialist agenda — which was not palatable to the market. So, after deliberating from 1995 to 1999, this ridiculous idea was dropped.
Kishore Nair Mumbai
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