Circle on corporate governance

Corporare Governance is a major issue, may be very few exceptions like Tatas. Less than a year back Vedanta tried to delist, at a price of Rs 89 or so, today market price is 320, went above 350, a month before delisting notification Book value was drastically reduced by half citing uncertain times of Covid, SEBI just kept quiet. Delisting fell through because enough share holders did not offer their shares for delisting & LIC the major share holder offered for buy back at Rs 320,if enough share holders had opted for delisting, Vedanta would have been forced to accept RS 320 price for all share holders or offer a counter offer which could not have been much lower than Rs 320, so to circumvent that, the chairman comes on TV 2days before the last date of offer and declares that delisting has been oversubscribed, many who were waiting for the last minute to offer, did not make any offer, because once fully subscribed all share holder's would get the same price. One day after the last date of subscription Chairman declares under subscription because of which delisting failed, and all through this SEBI kept sleeping. Two days before Vedanta has annouced a demerger of Business divisions which is normally a very good news for share holders, but next day the share tanked Rs 29 because share holders did not trust management be fair. Few days back Vedanta has demerged with parent company, to deprive Vedanta share holders of special dividend declared in the event of getting back the " retrospective tax-popularly known as 'Tax terror' , with specific announcement that with this demerger with Parent Company, only parent company is eligible to get benefits of refund. With one stroke vedanta share holders have been deprived of substantial special dividend promised & the irony is Govt Authorities had sold off Shares of Vedanta to recover the retrospective tax, logically that value of shares should have come back to Vedanta, if this mischievous demerger with Parent company had not come up. If there are any legal experts on this forum ,I request them to take up this legally. more  

Not all of us are Financial markets-savvy. So, we depend on institutions such as SEBI. Investing in Financial market is not being greedy, but to seek alternatives to guaranteed, low interest investments. From the comments I read above, there are two possibilities I can think of why IPO would have gone south after a time lapse. SEBI may have reviewed a company's filings and determined it to be of good financial health with good future growth potential. The company, for whatever reason, would have gone south. In this scenario, no one can be blamed, including the investor. The second scenario is, as some one suggested, SEBI may not have followed it's strict fiduciary responsibility in declaring the company a viable investing instrument. If this were to be the case, there must be proper governance of SBEI. I am hoping SEBI is an independent government entity with no political intervention. Besides, it is very difficult to prove, legally, that SEBI was sleeping at the wheels. Some reasonable options for investors would be to park their money in robust mutual funds that have a balance of multiple stocks and bonds. And be in it for long-term. If you play the market short-term out of greed, then you are doing it at your own peril. Disclaimer: I am no Financial expert, in fact far from it. I am sharing my decades of experience I gained/learned from my own investments. All the best. more  

Not only SEBI but other entities like merchant bankers and rating agencies are equally responsible. There should be severe punishment to the wrong doers for inflating profits/ turnover before IPO/Right Issue. When the market is hot, many unscrupulous businessmen come out with such issues to make fortunes at the cost of small investors. They are very shrewd and know MAKE HAY WHEN THE SUN SHINES. more  

The public cannot verify the correctness of the disclosed financials of the companies while applying for IPOs. It is therefor taken for granted that the company maintains the books properly and are properly disclosed and controlled by SEBI. it seems corruption has entered the SEBI office also, as otherwise common man is unable to accept the reality who is at fault when an IPO is valued less by the investors after it is launched. SEBI should be more strict and follow the norms properly for the benefit of the common man. more  

Plain and simple. Caveat emptor. Let the buyer beware. Every one knew that PayTM had not made one rupee profit right from inception. Yet there were enough people who paid 2000/ plus for a share of the company which was bleeding. Was it greed? All risk factors were in the DRHP, but how many actually went through it before applying? It seems to be a replay of the times of 93/94 and yet again of 97 and so on. more