This refers to the report “Investment bankers to follow uniform due diligence norms” (August 8). First, due diligence requirements and guidelines have been clearly detailed in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. All merchant bankers, even if they are not members of the Association of Investment Bankers of India, have to follow these. So, there is no need for more new and “uniform” guidelines. After all, the quality of due diligence is what differentiates one bank from another and each must be allowed to develop its own methodologies as an instrument of competition. If initial public offerings can be rated, why not the due diligence procedures?
T R Ramaswami Mumbai
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