Monday, January 12, 2009

Grading of Initial Public Offerings (IPOs) - Capital Markets' New Found Transparency?

Over the past month or so, I have had the opportunity to research the merits and efficacy of Indian capital market's new initiative - the grading of the initial public offerings (IPOs). What generated as a result of this research is a 30 page report which has been published as a working paper in the Indian Institute of Management (IIM) Ahmedabad library.

The initiative being a relatively new one, this research brings a first of its kind perspective in rationalizing the efficacy of the IPO grading. If the grading initiative improves the welfare of the capital markets (early research shows that capital markets have benefited), then the possibility of other countries mandating similar requirements for their respective capital markets is definitely a possibility.

The link to the working paper can be found here.

- SP