The Hindu Business Line : SEBI chief for realistic pricing of IPOs — `MFs invested significantly in last few months'

The Securities and Exchange Board of India intends to persuade issuers coming up with initial public offerings (IPOs) to be "a little more realistic" on the pricing front.

Speaking at an industry gathering recently, Mr M. Damodaran, SEBI Chairman, said, "some of the problems that we are facing today is because of the inappropriate pricing of issues".

"While we will not approve the prices, we will persuade those who fix the prices for such issues to be a little more realistic and price them little better than what they have," he said. Stating that the Indian growth story was not over as yet, the SEBI Chairman said that his interaction with investors has made him believe that more money would flow into the Indian market in the coming days.

He also highlighted that the MFs had in the last few months invested significantly in the Indian market. In the last one-month, Mr Damodaran said, MFs have raised around Rs 8,000 crore and this amount had not been invested as yet.

"Going forward, most, if not all, of this money will find its way into the Indian market. While the presence of FIIs is large, it does not mean that they are the only significant investors today. We will also bring more retail investors. We will have more Indian institutional investment as well as from mutual funds," he said.

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