Capital market regulator SEBI (Securities and Exchange Board of India) said that companies will have to pay commission to brokers for the submission of investors’ IPO (initial public offering) applications even if the public offer is withdrawn. The regulator also said that listings will not be allowed till the time this payment is made.
Once the broker accepts the IPO application, he would be responsible for uploading the bid on the stock exchange system and would be made responsible for not uploading the bid even after accepting the application.
The move to pay commission to brokers is to ensure that they will be interested in marketing the issue well. The stock exchanges would provide for download of application forms on their websites, and also facilitate investors to check the status online.