Regulatory Framework and IPO Underpricing
Journal Title: Scholars Journal of Economics, Business and Management - Year 2014, Vol 1, Issue 4
Abstract
Underpricing in IPOs is one of the widely studied areas of finance. The regulatory framework governing the IPOs is a deciding factor that can increase or reduce underpricing in IPOs. The regulatory framework is a guiding light for the investor to take fair decisions and also exercises strict control on the issuing firm. The pricing mechanism, through which the shares are issued, is one of the main regulatory guideline which affects the IPO underpricing. Fixed pricing and book building are the two most widely used pricing mechanism for the issue of IPOs. The shares can also be issued by using auction pricing but it is not much used and is applicable to some countries. This paper is an attempt to find out what major changes have been made in the regulatory framework for the issue on an IPO in India and to study the impact of regulatory framework on IPO underpricing. Keywords: Underpricing, IPO, Fixed Pricing, Book building, JEL Classification: G32
Authors and Affiliations
Lalit Bhalla, Dr. Vijay Kumar Kaushal
Keywords
Related Articles
- EP ID EP383406
- DOI -
- Views 117
- Downloads 0
Sustainability: Triple bottom line reporting in Nigerian companies
This paper examines the approaches of Nigerian enterprises to triple bottom line reporting with a view to assessing the adequacy of such practices, particularly the reporting on the elements of people and planet vis-à-vi...
Research on the Change of Family Planning Policy in China Based on the Theory of Multiple Streams
As a basic national policy of China, the family planning policy implemented in 1970s has made great contributions to the suppression of the rapid growth of population and promote the rapid development of the social econo...
Compliance and Non Compliance Behavior of Business Profit Taxpayers’ Towards the Tax System: A Case Study of Mekelle City, Ethiopia
In developing countries taxation is a challenging topic and has attracted increasing attention in the last two decades. Many problems observed like poor administration, failing to collect sufficient tax revenues, tax st...
Exploration on Covered Sector System of China’s ETS in Theory and Practice
The Emission trading Scheme is an important economic measures to abate greenhouse emission, and its prime step is to determinate the covered sector as well as threshold of covered emission sources within specified sector...
The Risk Analysis and Avoidance Measures of Bot Project
Abstract:BOT is a financing model, which is widely used in the financing of capital-intensive projects, especially financed infrastructure projects in developing countries. Since the 1980s, as a new financing model, BOT...