In most of the cases investors money is not refunded properly even after allotment of the shares.so lots complaints are there. to resolve this SEBI is planning to change the rules on IPO money. this will be helpful to retail investors.According to new rules companies have to collect the IPO money after allotment of the shares for retail and other investors,SEBI chairman Bhave said "we hope that the pilot projects will start by end of Augest month.If the pilot project succeeds then we will rollout all over the country" he said
What is there in Pilot project?
Three major things are there in this pilot project
1.Banks will be responsible to resolve the investors problems.
2.In case of failure of an issue,the bank will have to immediately release the block on receipt of request from the registrars.
3.Book running lead managers will have to intimate the issue opening date to Self-Certified Syndicate Banks(SCSBs) in writing.
Once this is stabilises institutional investors have to pay 100% amount,earlier it was 10%. This system is expected in this year end.
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