Mumbai, March 07: Market regulator SEBI has said it never asked companies to use only the French Auction route for public issues, which failed to elicit the desired response from investors.
“We have not prescribed French Auction. It’s a choice of the issuer,” Securities and Exchange Board of India (SEBI) Chairman C B Bhave said here.
He said if issues are not getting desired benefits from French Auction, the issuers can always change it.
The French Auction route did not yield the required results for the National Thermal Power Corporation Ltd (NTPC) and the Rural Electrification Corporation Ltd (REC) issues.
The poor response to NTPC and REC issues has prompted mineral giant National Minerals Development Corporation to contemplate using the book-building process for deciding the price band of its forthcoming follow-on public offer.
–Agencies