Professional Documents
Culture Documents
IPO New Issue Market
IPO New Issue Market
IPO New Issue Market
Issues
16
Market Friction
• Transaction cost
• Liquidity
• Information asymmetry
• Trading restrictions and regulatory constrains
• Asymmetric taxes
17
Market Efficiency
• Operational Efficiency
– Offers investors reasonably priced services related
to buying and selling securities
• Pricing Efficiency
– Prices fully reflect all available information
relevant to the valuation of securities
18
Participants
• Investors and investment intermediaries
• Regulator
– Financial markets regulator (SEBI)
• Markets and facilitation
– NSE, BSE, NCDEX, MCX,
– Depositories; Trading, Clearing & settlement
services; Information services