IPO process under review

Sebi plans to allow investors to hold subscription amounts for initial share offerings in their bank accounts until allotment to cut the time between stock sale and listing. “Sebi hopes to take a decision in three months,” chairman C B Bhave told reporters. He said there is no reason why an investor’s money should leave his bank account when he is not assured about allotment of shares. “What do you do with this money for 21 days?” he asked of intermediaries who handle the IPO process. “We need to take what is required. Technology will take care of how it should be done,” he said, indicating that investors should pay only for the shares allotted rather than wait for refund for unallotted shares.