(a) whether the Securities and Exchange Board of India (SEBI) is planning to adopt a grading system for the Initial Public Offerings (IPOs).
(b) if so, whether any appraisal body has been set up for this purpose;
(c) if so, the details thereof; and
(d) the time by which this system would be put into operation?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a): A grading system for IPOs, on an optional basis, has been
introduced by Securities and Exchange Board of India (SEBI).
(b): No Sir. The grading would be done by credit rating agencies
registered with SEBI under the SEBI (Credit Rating Agencies)
Regulation, 1999.
(c) and (d): SEBI (Disclosure and Investor Protection) Guidelines
were modified on April 24, 2006 to provide for disclosure of IPO
grades, where the issuer company has opted for IPO grading.