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Legal Framework and Governing Design for IPOs in India

  • Parimala Veluvali
Chapter
Part of the Advances in Theory and Practice of Emerging Markets book series (ATPEM)

Abstract

Financial market regulation should serve the dual objectives of providing access to the issuers for their growing needs while ensuring fair dealing and protection of investors. The need for regulating the market is essentially a protective measure toward investors. Primary market regulation in India has been progressively shaped to ensure that investors are exposed to issues which are fundamentally good, as perceived through parameters of profitability, certain minimum operating history and credibility of the issuer. The present chapter gives an overview of the legal framework for IPOs in India as it presently exists and also its evolution over a period of time. By drawing upon the salient policy changes that have been introduced since the inception of SEBI, this chapter explains the market design for public offerings as it progressed from a controlled regime to a regulated regime. A review of the market design reveals that rigorous eligibility norms, simplification of the issue process and better price discovery have been main aspects of market regulation. Gradual integration of the Indian market with international practices along with broadening and deepening the market to encourage widespread investor participation appears to be the desired intent behind these regulations.

Keywords

Evolution Market design IPO Regulatory framework Issue process 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Parimala Veluvali
    • 1
  1. 1.Symbiosis Centre for Management StudiesSymbiosis International (Deemed University)PuneIndia

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