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Case
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Reference no. 111-086-1
Subject category: Finance, Accounting and Control
Authors: D Satish; Nitya Nand Tripathi
Published by: IBS Center for Management Research
Published in: 2011
Length: 12 pages
Data source: Published sources
Topics: Scam; IPO; Bonus; SEBI; SAT; Regulator; Book Running Lead Manager (BRLM); Investigation; Syndicate; Inflate; Listing; Withhold; Procedure
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Abstract

This case discusses the various irregularities indulged in by the syndicate and sub syndicate members involved in the Vaswani IPO to inflate demand and mislead Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) into participating in the issue. On 13 May 2011, market regulator, the Securities and Exchange Board of India (SEBI), took the necessary action against the Book Running Lead Manager (BRLM) and promoters of the company. This was the first time that SEBI had stopped the listing of an IPO after the allotment of shares to the investors. This case is designed to enable students to: Understand SEBI’s Rules and Regulations on IPOs; Understand the major flaws and loopholes in investing in IPOs in India; Understand the role of SEBI in investor protection. This case is meant for MBA / MS students as part of a financial management and investment banking and financial services.
Location:
India
Industry:
Steel
Size:
Medium
Other setting(s):
2006-2011
Teaching note
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Reference no. 111-086-8
Subject category: Finance, Accounting and Control
Authors: D Satish; Nitya Nand Tripathi
Published by: IBS Center for Management Research
Published in: 2011
Length: 3 pages
Data source: Published sources
View full details

About

Abstract

This case discusses the various irregularities indulged in by the syndicate and sub syndicate members involved in the Vaswani IPO to inflate demand and mislead Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) into participating in the issue. On 13 May 2011, market regulator, the Securities and Exchange Board of India (SEBI), took the necessary action against the Book Running Lead Manager (BRLM) and promoters of the company. This was the first time that SEBI had stopped the listing of an IPO after the allotment of shares to the investors. This case is designed to enable students to: Understand SEBI’s Rules and Regulations on IPOs; Understand the major flaws and loopholes in investing in IPOs in India; Understand the role of SEBI in investor protection. This case is meant for MBA / MS students as part of a financial management and investment banking and financial services.

Settings

Location:
India
Industry:
Steel
Size:
Medium
Other setting(s):
2006-2011

Related

Teaching note
-
Reference no. 111-086-8
Subject category: Finance, Accounting and Control
Authors: D Satish; Nitya Nand Tripathi
Published by: IBS Center for Management Research
Published in: 2011
Length: 3 pages
Data source: Published sources
View full details