LURING INVESTORS IN PSU IPOs
LURING INVESTORS IN PSU IPOs
GOVERNMENT WILLING TO OFFER 0.35 PER CENT COMMISSION TO BROKERS
IN a bid to ensure greater retail participation in its disinvesment programme, the government has decided to pay a commission to brokers for luring investors to initial public offerings(ipo)of public sector undertakings(psu).
Sastarting with the public issue of satluj jal vidyut nigam LTD(SJVNL),which opens for subscription on thusday,the government has fixed a commission of 0.35 percent for brokers for selling shares to retail investors and 0.15 per cent bringing in HNI clients
Revealing this to the media on the eve of the satluj jal vidyut nigam issue,disinvestment secretary sumit bose said : after consulting with brokers have been fixed at0.35 per cent for retail investors and 0.15 per cent for HNIs.
Hitherto,the commission paid by the government was included in the face of the book running lead managers .now the government will reimburse this commission to the BRLMs for the brokers.the new norm will be applicable to all subsequent issues,starting with “SJVNL”
