COs TO COMPENSATE IF PRICE FALLS WITHIN MONTHS OF IPO

The Securities and Exchange Board of India (SEBI) has come out with a discussion paper on safety net which has rightly evoked strong responses from both sides. While one side says it is risk capital and how can anybody ask to give guarantee and return the money, the other side says when two-thirds of the issues are continuously trading below issue price year after year, month after month, even after adjusting for the general decline in the market, how can you expect retail investors to come to the market.