SEBI FRAMEWORK ON IPO

Subject : Economy

Context : New SEBI framework to streamline IPO process.

Concept :

Markets regulator Sebi on Tuesday put in place a uniform policy to streamline the reconciliation process among intermediaries with regard to initial public offers as well as a new mechanism to compensate investors.
The new framework would address issues related to delay in receipt of mandate by investors for blocking of funds due to systemic issues at intermediaries and failure to unblock the funds in cases of partial allotment by the next working day from the finalisation of Basis of Allotment (BOA), Sebi said in a circular.

Initial Public Offering

IPO is the selling of securities to the public in the primary market.
Primary market deals with new securities being issued for the first time. It is also known as the new issues market.
It is different from secondary market where existing securities are bought and sold. It is also known as the stock market or stock exchange.
It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.
Unlisted companies are companies that are not listed on the stock exchange.
It is generally used by new and medium-sized firms that are looking for funds to grow and expand their business.