SEBI new initiative - Institutional Placement Program ( IPP )

SEBI, the Capital market regulator initiative to help Company to increase the Public shareholding easily without going into the detailed process has its advantages and disadvantages. It will help Public sector Company who are still having less than 10% public  shareholding to meet the SEBI criteria. It will also help certain Private Company who has still not complied the minimum public holding requirement of 25%. It will  help Government to get some money through disinvestment of some of its PSU having below 10% public holding, As Government has failed to augment fund through disinvestment route this year  it is already  short of 40000 crores of its budgeted plan. The Disadvantage of this scheme  is that it will deprive retail investor to get shares of some good PSU company. The auction route is only available only to the QIB segment. The IPP mode is available only for complying the 10% and 25% public holding requirement. The Process will be very transparent and take less time and with minimum formalities. Let us see how it is catching up in the coming Months.