SEBI fines i-bankers for shoddy work

This newspiece from ET caught my eye. It says:

Capital market regulator SEBI is set to impose penalties on some of India’s top investment bankers for what it considers “shoddy work” done by them while handling public offerings over the past few years. The regulator’s Market Intermediaries Regulation and Supervision Department (MIRSD) has uncovered serious shortcomings in the due diligence process for initial public and rights offerings, besides open offers, carried out by seven investment bankers — Kotak, Enam, DSP Merrill Lynch, SBI Caps, HSBC, Keynote and Aryaman Financial.

The word shoddy and all big names associated with i-banking being fined is serious stuff. There was a mad rush for IPOs in 2006 and 2007 and some lax in standards can’t be ruled out. There were many companies whose IPOs were questioned by several analysts but still received huge subscriptions.

This development is not yet on SEBI website and it will be interesting to see any such official release on the topic.

One Response to “SEBI fines i-bankers for shoddy work”

  1. VASTINE Alexis Says:

    Thanks for sharing that!

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