Q: One word on the idea doing the rounds from the regulator of putting some kind of circuit filters in for the smaller IPOs. Do you think that is a wise move?

Basu: I am sure; it’s a move for the time and there would be moments when it will look like a wise move when the volatility is high and all the suggestions come up during those times. In the first instance we shouldn’t have a case like Nisaan copper it’s not the kind of stock that should come to the market and I am not sure if any of the so called well known investment bankers were involved in that and then it just goes up and down and look at where the stock is today? It’s just nowhere.

I think the real emphasis ought to be on the quality of companies that is coming to the market and Sebi does sit on prospectuses, Sebi does look at them, Sebi does look at disclosures. I wish they cut down all emphasis on irrelevant disclosure and went in for much more sensible ones looking from the recent past. But I am not sure circuit filter is going to be an issue, the moment the volatility goes down.

Yes, it might serve limited purposes at certain times but then it becomes very subjective. Why should a small issue necessarily be a bad issue? I don’t know. There are whole lot of smaller companies, which are doing exceptionally well. Today in fact a company which is going to make Rs 15 crore issue, I can tell you it’s not going to find good quality investment banker because they don’t find it worthwhile to do this. Then it is probably forced to go to a second rung investment banker and then it gets an image that this is not a good company and they should be circuit filter and so one, the whole thing becomes very subjective.