To get the whole grey market episode into this as well and how much that has to do with pricing and post listing flipping and the whole game?

Basu: It has got something to do with it but we didn’t have a very active grey market in all cases in the past one and half year. But the very fact that we are sitting here and using the term ‘grey market’ where there is a regulator and its suppose to regulate everything open and above in full public view itself is an absolute complete failure of the regulatory mechanism. The newspapers are writing, the channels are talking about it but I don’t think anybody in the Ministry of Finance ever asked – “What is this grey market? Is it supposed to be legal? If it is supposed to be illegal what is Sebi doing about it?”

I think the whole pressure has to be on the regulator to make sure that we have a framework which is consistent with fair practices and secondly and far more importantly we should have enforcement to see that that particular framework is actually working and we don’t have either of these two and therefore a lot of investors are getting sucked into these things.

I don’t agree with Jawahar Mulraj’s logic that the investment banker should be directly accountable. One cannot relate a market environment, pricing at a point in time, one year price performance later to pricing or due diligence on the part of the investment banker.

One thing has to be made clear repeatedly that when one is buying an IPO one has to more careful because one doesn’t have the track record of the promoter and as Jawahar Mulraj said that the investment banker and the issuer is on one side and not only that sometimes even the regulator is on that side. So we have the regulator, the investment banker and probably the broker who is pushing it and the financial planner who is saying, “this IPO is very good, and you will probably be able to flipper at 2x.”All of them are on one side; it’s cynical but it’s the sad story of the IPO market.