Kolkata: Market regulate SEBI today said it will review the IPO grading concept as it has gained some experience after receiving both positive and negative responses from the concept.
“Now, we have some experience. The primary market committee will take up the matter whether it is proper to continue,” Securities and Exchange Board of India Chairman C B Bhave said at an interactive session with Merchants Chamber of Commerce.
Since April 2007, SEBI has made it mandatory for all IPOs to be graded by rating agencies.
After a company gets the SEBI’s nod it has to rope in rating agencies like ICRA, Crisil, Fitch and CARE. The grades obtained have to be disclosed in the prospectus.
The grade varies between one and five where five is the best and one is poor in fundamentals.