Market Governance

The greed of Indian corporate promoters is unparalleled. There is a saying in the stock market that promoters recover their investment by bringing in their first IPO in which they sell their shares to the public at highly inflated prices. This saying has more than a grain of truth in it; almost all share issues are priced at many times of their face value; typically, a share with a face value of Rs.10 is offered to the public at Rs.600-Rs.700