IPO Grading Made Compulsory

The Securities and Exchange Board of India (Sebi) has taken the plunge and made the grading of IPOs mandatory. From May 1, any promoter knocking on the doors of Sebi with a draft prospectus will need to get his offering graded by a credit rating agency.
“The issuer shall be required to disclose all the grades obtained by it for its IPO in the prospectus, abridged prospectus, issue advertisements and all other places where the issuer is advertising for the IPO,” a Sebi amendment to the Disclosure and Investor Protection Guidelines, 2000, issued on Monday, states.
SEBI has also amended the guidelines on qualified institutional placements (QIPs). Only companies with a one-year trading history will be allowed to raise funds through QIPs.
source dnaindia.com

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