Verify claims on IPOs: Govt

The Government has cautioned small investors against misleading advertisements of companies looking to tap the capital market and advised them to verify their credentials before putting in their money. The Ministry of Corporate Affairs has, in fact, offered its services to investors for helping them check the promoters8217; track record and regulatory compliances, among others.

The caution assumes significance in the wake of over 50 IPOs awaiting regulatory clearances. The initiative of the Corporate Affairs Ministry is on the lines of alerts issued by the BSE and NSE, which had categorically said: 8220;Do not get swayed by promises of high returns. Verify the tall claims made in advertisements.8221; The information needed to make an informed decision for IPO investments is available on the ministry8217;s website and other government websites.

The ministry said information like master data of companies, details on directors and documents like annual returns and balance sheets as well as a list of those that had duped investors are available on its website.