'Rational man' regulation: A farce

People who circle junkyards for matching hubcaps will buy mutual funds without reading the prospectus

In mid-July last year, CarTrade, a website to buy and sell used cars and car financing, was listed. The initial public offering (IPO) was priced at Rs 1,585. Last week its stock price closed the week at Rs 640, a loss of 60 per cent in seven months. A couple of months later came Policybazaar, with its IPO priced at Rs 980. Last week, the stock closed at Rs 524, a fall of 47 per cent. A week after Policybazaar came Paytm, the ubiquitous payment platform, which made an issue at Rs 2,150. It was the biggest ever IPO. Last