PROJECT REPORT

Measures for Improving Retail Investors’ Confidence in Indian

Primary Market

RELIGARE SECURITIES LTD.

Submitted to:- Submitted by:-DR. Y.P. SINGH TARUN PRAKASH SINGHFaculty P.G.D.B.A. IIIISE Enroll. No. - 878Lucknow Session: 2006-2008

INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION

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ACKNOWLEDGEMENT

“When walking down the path of life, remember it’s true that every man

must feel the thorns that grow along the way and every soul will stumble

for every man is weak and the road of life is uncertain and its prospects

often bleak. But always give a helping hand to help the soul beside you

walk across each weary mile.”

I hereby express my profound gratitude to all those respected people who

supported me in the completion of this project.

I would like to thank my company guides, Mr. Sameer Kaila (Branch

Head, Religare, Janakpuri branch), Mr. Chander Narula (RM,

Religare, Janakpuri Branch) and all the staff members of Religare

(Janakpuri Branch) for their cooperation and support.

I would also like to extend my thanks to my project guide, Mr. Anurag

Singh (Faculty, DSPSR) for his constant support and valuable suggestions

without which this project would not been successfully completed.

Lastly, no words are enough to express my heartiest gratitude to my

parents whose blessings are inspiration in the foundation of my work.

I am really thankful to all of them for their immense support and valuable

guidance in the completion of this project.

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(TARUN PRAKASH SINGH)

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TABLE OF CONTENTS

S No. Topic Page Nos.

1 Introduction Of The Company

I About Company 4-5

II Group Company 6-8

III Promoter Group – Business Interests 9

IV Business Line 10

V Brand Identity 11-12

2 An Overview Of The Capital Market

I Capital Market 13

II Primary Market 13-14

III Methods Of Issuing Securities In The Primary Market

15-17

IV Eligibility Norms For Making Issues 18-19

V SEBI’s Role In An Issue 20-21

VI Retail Investor Defined 22

VII Promoter Defined 22-23

VIII Pricing And Allotment Of Issue 24-26

IX IPO As An Investment Avenue For Retail Investors

27-28

X Learn Before You Leap Into The IPO Mart 29-323 Project Report

I Introduction 33-34

II Need Of The Study 35

III Results Of Literature Survey 36

IV Objective 37

V Proposed Methodology 38

VI Data Analysis & Interpretation 39-50

VII Limitations 51

VIII The Conclusion 52-54

IX Recommendations 55-56

4 Bibliography 59

5 Questionnaire 60-61

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INTRODUCTION OF THE COMPANY

ABOUT COMPANY

Religare is driven by ethical and dynamic process for wealth creation.

Based on this, the company started its endeavor in the financial market.

Religare Enterprises Limited (A Ranbaxy Promoter Group Company)

through Religare Securities Limited, Religare Finvest Limited,

Religare Comdex Limited and Religare Insurance Advisory Services

Limited provides integrated financial solutions to its corporate, retail and

wealth management clients. Today, we provide various financial services

which include Investment Banking, Corporate Finance, Portfolio

Management Services, Equity & Commodity Broking, Insurance and

Mutual Funds. Plus, there’s a lot more to come your way.

Religare is proud of being a truly professional financial service provider

managed by a highly skilled team, who have proven track record in their

respective domains. Religare operations are managed by more than 1500

highly skilled professionals who subscribe to Religare philosophy and are

spread across its country wide branches.

Today, we have a growing network of 150 branches and more than 300

business partners spread across 180 cities in India and a fully operational

international office at London. However, our target is to have 350 branches

and 1000 business partners in 300 cities of India and more than 7

International offices by the end of 2006.

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Unlike a traditional broking firm, Religare group works on the philosophy

of partnering for wealth creation. We not only execute trades for our

clients but also provide them critical and timely investment advice. The

growing list of financial institutions with which Religare is empanelled as

an approved broker is a reflection of the high level service standard

maintained by the company.

VISION

To build Religare as a globally trusted brand in the financial services

domain and present it as the ‘Investment Gateway of India’.

MISSION

Providing financial care driven by the core values of diligence and

transparency.

BRAND ESSENCE

Religare is driven by ethical and dynamic processes for wealth creation.

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GROUP COMPANIES

Religare Enterprises Limited group comprises of Religare Securities

Limited, Religare Comdex Limited, Religare Finvest Limited and

Religare Insurance Advisory Services Limited which deal in equity,

commodity and financial services business.

Religare Securities Limited

Member of National Stock Exchange of India (NSE) and Bombay Stock

Exchange of India (BSE). Depository Participant with National Securities

Depository Limited (NSDL) and Central Depository Services (I) Limited

(CDSL), A SEBI approved Portfolio Manager.

RSL serves a platform to all segments of investors to avail the

opportunities offered by investing in Indian equities either on their own or

through managed funds in Portfolio Management

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Religare Comdex Limited

Member of National Commodity Derivative Exchange (NCDEX) and

Multi Commodity Exchange (MCX).

RCL provides platform to both agro and non-agro commodity traders to

derive the actual price of the commodity and also to trade and hedge

actively in the growing commodity trading market in India.

Religare Finvest Limited

A Non Banking Finance Company (NBFC) is aggressively making a name

in the financial services arena in India. In a fast paced, constantly changing

dynamic business environment, RFL has delivered the most competitive

products and services.

RFL is primarily engaged in the business of providing finance against

securities in the secondary market. It also provides finance for application

in Initial Public Offers to non-retail clients in the primary market.

RFL is also planning to initiate personal loan portfolio as fund based

activity and mutual fund distribution as fee based activities.

Religare Insurance Advisory Services Ltd.

Religare has been taking care of financial services for long but there was a

missing link. Financial planning is incomplete without protective measure

i.e. structured products to take care of event of things that may go wrong.

Consequently, Religare is soon coming up with Religare Insurance

Advisory Services Limited. As composite insurance broker, we would deal

in both insurance and reinsurance, providing our clients risk transfer

solutions on life and non-life sides.

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This service will take benefit of Religare’s vast business empire spread

throughout the country -- providing our valued clients insurance services

across India. We aim to have a wide reach with our services – literally!

That’s why we are catering the insurance requirements of both retail and

corporate segments with products of all the insurance companies on life

and non-life side.

Still, there is more in store. We also cater individuals with a complete suite

of insurance solutions, both life and general to mitigate risks to life and

assets through our existing network of over 150 branches – expected to

reach 250 by the end of this year!

For corporate clients, we will be offering value based customised solutions

to cover all risks which their business is exposed to. Our clients will be

supported by an operations team equipped with the best of technology

support.

RIAL aims to provide neutral, transparent and professional risk transfer

advice to become the first choice of India.

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PROMOTER GROUP – BUSINESS INTERESTS

Group Business Interests

Pharma

Healthcare

Diagnostics

Financial Services

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BUSINESS LINES

11

Equity & DerivativeTrading

Institutional Distribution

Services

Depository Services

Commodity Services

International Equity &

Commodity

Wealth Managemen

t Services

Investment Banking & Corporate Finance

Private Equity

BRAND IDENTITY

The Name

Religare is a Latin word that translates as 'to bind together'. This name has been chosen to reflect the integrated nature of the financial services the company offers. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions, alike.

The Symbol

The Religare name is paired with the symbol of a four-leaf clover. The four-leaf clover is used to define the rare quality of good fortune that is the aim of every financial plan. It has traditionally been considered good fortune to find a single four leaf clover considering that statistically one may need to search through over 10,000 three-leaf clovers to even find one four leaf clover.

Each leaf of the four-leaf clover has a special meaning in the sphere of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming. Of new possibilities. It is the beginning of every step and the foundations on which a person reaches for the stars.

The second leaf of the clover represents Trust. The ability to place ones own faith in another. To have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all not in the binding but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with

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circumstance to generate those often looked for remunerative moments of success.

Hope, Trust, Care, Good fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize the values that bind together and form the core of the Religare vision.

Accent usage

The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface indicates a palatal emphasis sound of the letter A.

Pronunciation

reli•ga•re (rel'i-gâir)

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AN OVERVIEW OF THE CAPITAL MARKET

CAPITAL MARKET

Capital Market is the backbone of any country’s economy. It facilitates

conversion of savings to investments. Capital market can be classified as

primary and secondary market. The fresh issue of securities takes place in

primary market and trading among investors takes place in secondary

market. Primary market is also known as new issues market. Equity

investors first enter capital market through investment in primary market.

These new securities issued in the primary market are traded in the

secondary market. The secondary market enables participants who hold

securities to adjust their holdings in response to changes in their

assessment of risks and returns.

PRIMARY MARKET

The primary is that part of the capital markets that deals with the issuance

of new securities. Companies, governments or public sector institutions

can obtain funding through the sale of a new stock issue. This is typically

done through a syndicate of securities dealers. The process of selling new

issues to investors is called underwriting. In the case of a new stock issue,

this sale is an initial public offering (IPO).

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Features of Primary Market are:-

1. This is the market for new long term capital. The primary market is the

market where the securities are sold for the first time. Therefore it is also

called New Issue Market (NIM).

2. In a primary issue, the securities are issued by the company directly to

investors.

3. The company receives the money and issue new security certificates to

the investors.

4. Primary issues are used by companies for the purpose of setting up new

business or for expanding or modernizing the existing business.

5. The primary market performs the crucial function of facilitating capital

formation in the economy.

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METHODS OF ISSUING SECURITIES IN THE PRIMARY

MARKET

Primarily, issues can be classified as a Public, Rights (for existing

Companies) or Preferential Issue (also known as private placements).

While public and rights issues involve a detailed procedure, private

placements or preferential issues are relatively simpler.

Public issues can be further classified into Initial Public Offerings (IPO)

and Further Public Offerings (FPO). In a public offering, the issuer makes

an offer for new investors to enter its shareholding family. It then makes

detailed disclosures as per the guidelines in its offer document and offers it

for subscription.

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Initial Public Offering (IPO) is when an unlisted company makes either a

fresh issue of securities or an offer of sale of its existing securities or both

for the first time to the public. This paves way for listing and trading of the

issuer’s securities.

A Further Public Offering (FPO) is when an already listed company

makes either a fresh issue of securities to the public or an offer for sale to

the public, through an offer document. An offer for sale in such scenario is

allowed only if it is made to satisfy listing or continuous listing

obligations.

Rights Issue (RI) is when a listed company which proposes to issue fresh

securities to its existing shareholders as on a record date. The rights are

normally offered in a particular ratio to the number of securities held prior

to the issue. This route is best suited for companies who would like to raise

capital without diluting stake of its existing shareholders unless they do not

intend to subscribe to their entitlements.

A Private Placement is an issue of shares or of convertible securities by

listed companies to a select group of persons under Section 81 of the

Companies Act, 1956 which is neither a rights issue nor a public issue.

This is a faster way for a company to raise equity capital. A private

placement of shares or of convertible securities by a listed company is

generally known by name of preferential allotment. A listed company

going for preferential allotment has to comply with the requirements

contained in Chapter XIII of SEBI (DIP) Guidelines pertaining to

preferential allotment in SEBI (DIP) guidelines which interalia include

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pricing, disclosures in notice etc, in addition to the requirements specified

in the Companies Act.

A Qualified Institutions Placement is a private placement of equity

shares or securities convertible in to equity shares by a listed company to

Qualified Institutions Buyers only in terms of provisions of Chapter XIIIA

of SEBI (DIP) guidelines. The Chapter contains provisions relating to

pricing, disclosures, currency of instruments etc.

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ELIGIBILITY NORMS FOR MAKING ISSUES

SEBI has laid down eligibility norms for entities accessing the primary

market through public issues. There is no eligibility norm for a listed

company making a rights issue, as it is an offer made to the existing

shareholders who are expected to know their company. There are no

eligibility norms for a listed company making a preferential issue.

However for Qualified Institutions’ placement (QIP), only those

companies whose shares are listed in NSE or BSE and those who are

having a minimum public float as required in terms of the Listing

agreement, are eligible. The main entry norms for companies making a

public issue (IPO or FPO) are summarized as:

ENTRY NORM I: The Company shall meet the following requirements:

(a) Net Tangible Assets of at least Rs. 3 crores for 3 full years.

(b) Distributable profits in at least three years.

(c) Net worth of at least Rs. 1 crore in three years.

(d) If change in name, at least 50% revenue for preceding 1 year should be

from the new activity.

(e) The issue size does not exceed 5 times the pre- issue net worth.

To provide sufficient flexibility and also to ensure that genuine companies

do not suffer on account of rigidity of the parameters, SEBI has provided

two other alternative routes to company not satisfying any of the above

conditions, for accessing the primary Market, as under:

ENTRY NORM II:

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(a) Issue shall be through book building route, with at least 50% to be

mandatory allotted to the Qualified Institutional Buyers (QIBs).

(b) The minimum post-issue face value capital shall be Rs. 10 crore or

there shall be a compulsory market-making for at least 2 years.

OR

ENTRY NORM III:

(a) The “project” is appraised and participated to the extent of 15% by

FIs/Scheduled Commercial Banks of which at least 10% comes from the

appraiser(s).

(b) The minimum post-issue face value capital shall be Rs. 10 crore or

there shall be a compulsory market-making for at least 2 years.

In addition to satisfying the aforesaid eligibility norms, the company shall

also satisfy the criteria of having at least 1000 prospective allotees in its

issue

CATEGORY OF ENTITIES WHICH ARE EXEMPETED FROM

THE AFORESAID ELIGIBILITY NORMS

SEBI (DIP) guidelines have provided certain exemptions from the

eligibility norms. The following are eligible for exemption from entry

norms:

(a) Private Sector Banks

(b) Public sector banks

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(c) An infrastructure company whose project has been appraised by a PFI

or IDFC or IL&FS or a bank which was earlier a PFI and not less than 5%

of the project cost is financed by any of these institutions.

(d) Rights issue by a listed company.

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SEBI’s ROLE IN AN ISSUE

Any company making a public issue or a listed company making a rights

issue of value of more than Rs. 50 lakhs is required to file a draft offer

document with SEBI for its observations. The validity period of SEBI’s

observation letter is three months only i.e. the company has to open its

issue within three months period.

There is no requirement of filing any offer document / notice to SEBI in

case of preferential allotment and QIP. In QIP, Merchant Banker handling

the issue has to file copy of placement document with SEBI post allotment

for record purpose.

SEBI does not recommend any issue nor does take any responsibility

either for the financial soundness of any scheme or the project for which

the issue is proposed to be made or for the correctness of the statements

made or opinions expressed in the offer document.

It is to be distinctly understood that submission of offer document to SEBI

should not in any way be deemed or construed that the same has been

cleared or approved by SEBI. The Lead manager certifies that the

disclosures made in the offer document are generally adequate and are in

conformity with SEBI guidelines for disclosures and investor protection in

force for the time being. This requirement is to facilitate investors to take

an informed decision for making investment in the proposed issue.

The investors should make an informed decision purely by themselves

based on the contents disclosed in the offer documents. SEBI does not

associate itself with any issue/issuer and should in no way be construed as

a guarantee for the funds that the investor proposes to invest through the

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issue. However, the investors are generally advised to study all the

material facts pertaining to the issue including the risk factors before

considering any investment. They are strongly warned against any ‘tips’ or

news through unofficial means.

“DIP” GUIDELINES

The primary issuances are governed by SEBI in terms of SEBI

(Disclosures and Investor protection) guidelines. SEBI framed its DIP

guidelines in 1992. Many amendments have been carried out in the same

in line with the market dynamics and requirements. In 2000, SEBI issued

“Securities and Exchange Board of India (Disclosure and Investor

Protection) Guidelines, 2000” which is compilation of all circulars

organized in chapter forms. These guidelines and amendments thereon are

issued by SEBI India under section 11 of the Securities and Exchange

Board of India Act, 1992. SEBI (Disclosure and investor protection)

guidelines 2000 are in short called DIP guidelines. It provides a

comprehensive framework for issuances buy the companies.

SEBI ENSURE COMPLIANCE WITH DIP

The Merchant Banker are the specialized intermediaries who are required

to do due diligence and ensure that all the requirements of DIP are

complied with while submitting the draft offer document to SEBI. Any non

compliance on their part, attract penal action from SEBI, in terms of SEBI

(Merchant Bankers) Regulations. The draft offer document filed by

Merchant Banker is also placed on the website for public comments.

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Officials of SEBI at various levels examine the compliance with DIP

guidelines and ensure that all necessary material information is disclosed

in the draft offer documents.

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RETAIL INVESTOR DEFINED

Individual investors who buy and sell securities for their personal account

and not for another company or organization. They are also known as

“Individual investors" or "Small investors”.

‘Retail individual investor’ means an investor who applies or bids for

securities of or for a value of not more than Rs. 1,00,000. He can bid in a

book-built issue for a value not more than Rs. 1,00,000.

PROMOTER DEFINED

The promoter has been defined as a person or persons who are in over-all

control of the company, who are instrumental in the formulation of a plan

or programme pursuant to which the securities are offered to the public and

those named in the prospectus as promoters(s). It may be noted that a

director / officer of the issuer company or person, if they are acting as such

merely in their professional capacity are not be included in the definition

of a promoter.

'Promoter Group' includes the promoter, an immediate relative of the

promoter (i.e. any spouse of that person, or any parent, brother, sister or

child of the person or of the spouse). In case promoter is a company, a

subsidiary or holding company of that company; any company in which

the promoter holds 10% or more of the equity capital or which holds 10%

or more of the equity capital of the Promoter; any company in which a

group of individuals or companies or combinations thereof who holds 20%

or more of the equity capital in that company also holds 20% or more of

the equity capital of the issuer company. In case the promoter is an

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individual, any company in which 10% or more of the share capital is held

by the promoter or an immediate relative of the promoter' or a firm or HUF

in which the 'Promoter' or any one or more of his immediate relative is a

member; any company in which a company specified in (i) above, holds

10% or more, of the share capital; any HUF or firm in which the aggregate

share of the promoter and his immediate relatives is equal to or more than

10% of the total, and all persons whose shareholding is aggregated for the

purpose of disclosing in the prospectus "shareholding of the promoter

group".

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PRICING AND ALLOTMENT OF ISSUE

Indian primary market ushered in an era of free pricing in 1992. Following

this, the guidelines have provided that the issuer in consultation with

Merchant Banker shall decide the price. There is no price formula

stipulated by SEBI. SEBI does not play any role in price fixation. The

company and merchant banker are however required to give full

disclosures of the parameters which they had considered while deciding

the issue price. There are two types of issues one where company and LM

fix a price (called fixed price) and other, where the company and LM

stipulate a floor price or a price band and leave it to market forces to

determine the final price (price discovery through book building process).

FIXED PRICE OFFERS

An issuer company is allowed to freely price the issue. The basis of issue

price is disclosed in the offer document where the issuer discloses in detail

about the qualitative and quantitative factors justifying the issue price. The

Issuer company can mention a price band of 20% (cap in the price band

should not be more than 20% of the floor price) in the Draft offer

documents filed with SEBI and actual price can be determined at a later

date before filing of the final offer document with SEBI/ROCs.

PRICE DISCOVERY THROUGH BOOK BUILDING PROCESS

“Book Building” means a process undertaken by which a demand for the

securities proposed to be issued by a body corporate is elicited and built up

and the price for the securities is assessed on the basis of the bids obtained

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for the quantum of securities offered for subscription by the issuer. This

method provides an opportunity to the market to discover price for

securities.

Book building is a process of price discovery. Hence, the Red Herring

prospectus does not contain a price. Instead, the red herring prospectus

contains either the floor price of the securities offered through it or a price

band along with the range within which the bids can move. The applicants

bid for the shares quoting the price and the quantity that they would like to

bid at. Only the retail investors have the option of bidding at ‘cut-off’.

After the bidding process is complete, the ‘cut-off’ price is arrived at on

the lines of Dutch auction. The basis of Allotment is then finalized and

letters allotment/refund is undertaken. The final prospectus with all the

details including the final issue price and the issue size is filed with ROC,

thus completing the issue process.

PRICE BAND

The red herring prospectus may contain either the floor price for the

securities or a price band within which the investors can bid. The spread

between the floor and the cap of the price band shall not be more than

20%. In other words, it means that the cap should not be more than 120%

of the floor price. The price band can have a revision and such a revision in

the price band shall be widely disseminated by informing the stock

exchanges, by issuing press release and also indicating the change on the

relevant website and the terminals of the syndicate members. In case the

price band is revised, the bidding period shall be extended for a further

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period of three days, subject to the total bidding period not exceeding

thirteen days.

It may be understood that the regulatory mechanism does not play a role in

setting the price for issues. It is up to the company to decide on the price or

the price band, in consultation with Merchant Bankers.

The basis of issue price is disclosed in the offer document. The issuer is

required to disclose in detail about the qualitative and quantitative factors

justifying the issue price.

ALLOTMENT OF ISSUE

All allotments are done fair and there cannot be any discretion in the

allotment process. Prior to the SEBI Circular on DIP Guidelines dated

September 19, 2005, the allotment to the Qualified Institutional Buyers

(QIBs) was on a discretionary basis. This however has been amended and

all allottees are allotted shares on a proportionate basis within their

respective categories.

In a book built issue allocation to Retail Individual Investors (RIIs), Non

Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) is

in the ratio of 35:15:50 respectively.

In case the book built issues are made pursuant to the requirement of

mandatory allocation of 60% to QIBs in terms of Rule 19(2)(b) of SCRR,

the respective figures are 30% for RIIs and 10% for NIIs. This is a

transitory provision pending harmonization of the QIB allocation in terms

of the aforesaid Rule with that specified in the guidelines.

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IPO AS AN INVESTMENT AVENUE FOR RETAIL INVESTORS

Investing in IPO is an easy, low-risk way to make an average of 2-3%

return in 20-30 days, assuming market does not fall in between allotment

and listing. A 2-3% return can seem very low on a nominal basis, but when

you calculate the annualised return it becomes very attractive. Investors

can make an annualised return of about 30%, on an average, easily by

investing in quality IPO’s. In fact Investors have made an annualised

return of over 100% in a few IPO’s. IPO as an investment class offers

good returns and no other similar risk reward structure will give as much

returns.

Investing in the issues of primary market has its own benefit and

drawbacks. Some of the key benefits are:

* It is safer to invest in the primary markets than in the secondary markets

as the scope for manipulation of price is smaller.

* The investor does not have to pay any kind of brokerage or transaction

fees or any tax such as service tax, stamp duty and STT.

* No need to time the market as all investors will get the shares at the same

price.

Some of the major drawbacks are as following:

* In case of over subscription, the shares are allotted in proportionate basis.

Thus, small investors hardly get any allotment in such a case.

* Money is locked for a long time and the shares are allotted after a few

days where as in case of purchase from the secondary market the shares

are credited within three working days.

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There are several strategies, methods or tools in the assessment of IPO’s.

There is no best strategy and investment in an IPO should be viewed on a

case-to-case basis.

The popular investment strategies are as follow:-

1. Buy and Hold: This is the most conservative and most fish patient way

to trade stocks. But it may also be the most efficient. Investors simply

choose quality IPO’s or blue chip stocks and hold them for many years.

Long-term investors don’t worry about market fluctuations because they

figure that their stocks will have time to recover from a down market. The

investor believes that in the long run the company will outperform the

market as the fundamentals of the company is sound. He also saves on

broker commissions because he isn’t paying for frequent transactions.

Drawback of this strategy is that choosing the right time to sell investments

can be tricky. One can counter this problem somewhat by knowing in

advance when he will need the money.

2. Short-term Trading: This method is a favorite for people looking to

make a quick buck. Basically, it involves applying for the IPO and then

swiftly selling stocks on the listing day to capitalize on volatile market.

Day traders can win or lose a fortune in a single day. The problem with

short-term trading is that over-all investor is bound to lose money in the

long run.

Many investors new to the stock-picking scene believe that there is some

infallible strategy that, once followed, will guarantee success. But it is not

so and there is no foolproof system for picking stocks!

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LEARN BEFORE YOU LEAP INTO THE IPO MART

An investor needs to be careful while investing in IPOs. In the world of

IPO investing, the most critical aspect is to read up as much as you can

about the issue. Do not treat the abridged prospectus as just an application

form. However badly designed and difficult it may be to read, the

prospectus is still a treasure-trove of information.

An investor who is considering a leap into the IPO market must go through

the following list of dos and don'ts.

Check out...

1. The promoters' background: This is by far the most important

element. However good the product, technology or market, it is the

promoters who run the company. Find out about their track record, their

other interests, performance of other group companies and the relationship

between these companies.

2. The company's balance sheet: If you want to be an investor, it's time

to start reading and understanding a balance sheet. Pay attention to the top-

line and the bottom-line, major variances; but most importantly, consider

carefully the extraordinary items and notes to accounts. It's quite possible

for a company to derive its revenues not from its main business, but from

smart accounting entries.

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3. Risk factors: Though risk factors are not very clearly spelt out, a

careful reading would still give enough information of the downsides. Try

to do an impact analysis of the critical risk factors.

4. Shareholding pattern: It is important to know who the major

shareholders of the company are and what their shareholding pattern will

be after the issue. A huge promoter stake is not too desirable. If a company

has institutional investors as its shareholders, it means that a lot of due

diligence has already been done on the company. Try to find out at what

prices these pre-issue allotments have been made, and to whom and when.

5. Value, not price or par: An offering at the face value of Rs. 10 is not

necessarily cheap. The "par value" system often gives you the impression

that no premium is being charged. But it's possible that such issues may

not even be worth the par value; in such cases, the par pricing could

actually mean an inherent premium. Also, beware of another malaise: of

some companies who offer shares by reducing par value to make their

offer prices look more attractive.

7. The issue objective and corporate actions: You certainly couldn't

have forgotten the huge incidence of "vanishing" companies which, in fact,

were cases of "vanishing" funds. It is important to find what the company

plans to do with the issue funds.

Is the issue for general corporate purposes, or to finance a new project or

for an expansion/diversification project? Or is it for retiring debt? Look

carefully at all corporate actions like dividends, bonus issues and

mergers/acquisitions.

33

8. Compliance record and litigations: Find out whether group companies

have been diligent in filing their returns to various bodies such as the stock

exchanges and registrar of companies. The prospectus will disclose all

major litigation cases filed against the company's directors and promoters,

as well as against group companies. Avoid companies that are deeply

mired in litigations.

9. Dues and disciplinary action: Check for outstanding dues and defaults

to lenders and depositors. Indian promoters do have a reputation for

defaulting, many times "willfully". It is also important to see if there have

been any disciplinary actions taken by SEBI, stock exchanges and other

regulatory body against the company or its directors/promoters.

10. Underwriters and investment bankers: Underwriters add to the

issue's strength. An underwritten issue today does not denote weakness

requiring an underwriting support, it shows that there are intermediaries

who after assessing the risks have decided to back the issue. Also, before

investing in an issue, look at the names of its investment bankers and

check out their past track record.

Don't be guided by…

1. Market prospects: Any prospectus will describe the market potential in

superlative terms. Do not be misled by those numbers mentioned in the

offer document.

2. The brands or corporate image: First of all, remember that you are

investing in the company, not in a brand. A company may have a hugely

34

popular brand, but may be bleeding financially. Moreover, a high-flying

company may still be a risky or losing proposition if its issue has been

aggressively priced.

3. Hype or loose talk: In buoyant times, the capital market is frequently

the subject of discussion at parties. Do not be influenced by this. Besides,

there may also be tonnes of uninformed advice that will come to you from

friends and relatives.

4. Greed: Do not bet your last penny on new issues. Do not borrow money

or sell other assets or worse, divert your business funds into new issues.

5. SEBI approval: The approval of an IPO by the markets regulator is not

a certificate of good quality. Most guidelines are very straight-jacketed. It's

all too easy for companies to comply with these guidelines, at least on

paper, if not in spirit.

An investor must remember that equity, by its very nature, is a risk-laden

instrument: it is because of this very fact it holds the promise of higher

rewards. Is should not be misconstrued as "guaranteed return products".

You can only minimise your risks, and that can be done by sticking to

good companies.

35

PROJECT REPORT

INTRODUCTION

Capital market is the market for raising of financial assets by the business

enterprises, firms, government, semi-government bodies, PSU’s and other

organisations, that have long maturity. It is a market for the lending and

borrowing of long term funds. It is mainly concerned with the mobilization

of national surplus funds and their investment in long term securities by

the issue and distribution of shares and by subsequent trade in them.

Public, intermediaries and companies constitute primary market. Fresh

issue of shares by companies either directly or through intermediaries takes

place in primary market. Offer of securities in primary market can take the

form of public issue, rights issue or private placement. A public issue,

which involves sale of securities to members of the public, is the most

important mode of raising long term funds. Rights issue is the method of

raising capital from existing shareholders by offering additional securities

to them on a pre-emptive basis. Private placement is a way of selling

securities privately to a small group of investors. In secondary markets

trading of existing securities take place.

Public, brokers, and financial institutions constitute the secondary market

both domestic and foreign and corporate houses. The secondary market in

India, where outstanding securities are traded, consists of the stock

exchange recognised by the Government. In stock exchanges trading takes

place between various investors. Stock exchange is one of the most

important institution in the Capital market, which includes term lending

36

institutions, banks, investors, companies and intermediaries who are

engaged in providing long term capital, whether share capital or debt

capital.

Since, Independence and particularly after 1951, the Indian Capital market

has been broadening significantly and the volume of saving and investment

has shown steady improvement. A very important indicator of the growth

of the Capital market is the growth of joint stock companies or corporate

enterprises. The rate of growth of investment has been phenomenal in

recent years. As a result of freeing the issue as well as pricing of securities,

subject to the regulations of SEBI, markets experienced tremendous

growth during the current decade. But this growth could not be sustained

and numbers of companies have become illiquid over period of time for

variety of reasons. As a consequence, investors have lost confidence in the

capital market and are wary of investing in equity shares.

37

NEED OF THE STUDY

Investor’s confidence is of great importance for the stability of capital

market in particular and Indian economy in general. A major proportion of

investment in primary & secondary markets come form small investors in

India. Whereas in developed countries institutional investors constitute a

major proportion of investment. Small investors approach primary markets

for both regular income and capital gains. When they invest in companies

either at par or at a reasonable premium they will receive dividends and

appreciation in market price and thus their twin objectives are satisfied.

Since liberalisation, small investors actively participated in the primary

market. This allowed for exponential growth in the primary markets as

well as secondary markets. But this growth could not be sustained due to

lack of quality in the securities offered. In order to have a sustainable

growth in the economy and capital formation an active primary market is a

must. Thus, reasons for lack of confidence and measures for revival of

small investor confidence is of importance not only from investors’ point

of view but also from economy point of view. This study makes an effort

to answer the issues relating to this topic. The project has been undertaken

to study factors affecting investor confidences and ways of improving

investors’ confidence in primary market.

38

RESULTS OF LITERATURE SURVEY

From the reports given by various newspaper articles, magazines and

internet journals, a number of factors can be identified as the causes for

lack of investor confidence in Indian primary markets. Some of the factors

identified are as follows:-

A) Strategic alliances used as a marketing tool for the investors before the

issue which did not continue after listing.

B) Companies used the names of reputed groups and institutional investors

as a marketing tool, which later on served their connections with the

companies after lock-in period.

C) Heavy premium charged on the issues but after listing these issued were

being quoted at a price far discounted.

D) Actual performance far below the projected figures.

E) Delay in commercial production due to number of factors.

F) Cost over run of projects due to implementation delays

G) Buy back arrangements with equipment suppliers and foreign partners

were not satisfied.

H) Companies investing in financial assets rather than fixed assets as there

was no control over the deployment of funds by the companies.

I) Indiscriminate investments by investors with a short-term attitude

without understanding the risk involved.

39

OBJECTIVE OF THE PROJECT

The main objective behind this study is to find out various ways of

improving the current primary market situation. What needs to be done to

make investors aware of the risks in investment, how the investments in

primary market issues takes place and what investors feel about improving

the quality of primary market issues are some of the sub objectives the

research proposes to discover.

40

PROPOSED METHODOLOGY

Sample Size : 100 respondents (common investors).

Sampling Method : Convenience Sampling.

Geographical Area : The study will be confined to the city,

New Delhi.

Data Collection : Secondary data collected from journals,

magazines, newspapers, internet and

reference books and primary data will be

collected through questionnaires.

A total of about 100 questionnaires were filled up by the investors located

in the city using brokers, investor associations, managers of companies,

professionals, Internet groups and other contacts. The responses were

received from those investors who were willing to spend their time and

wished contribute to research willingly only. So it constitutes a

convenience sample.

The questionnaire has three parts. In the first part, the investor preferences

for the decisions in primary market issues were graded using Likert scale.

In the second part the factors affecting the primary equity market were

studied using ranks. The third part consisted of an open-ended question

relating to measures to improve primary market situation.

41

DATA ANALYSIS & INTERPRETATION

INVESTOR DECISIONS IN PRIMARY MARKET

The responses given by the investors in the part I of questionnaire designed

for the survey, decisions taken by the individuals for investing in primary

market, are summarized as below.

1. The decision based on, investment in listed companies with good

current market price, received the following responses:

Weights given No. of respondents Percentage1.00 (least agree) 17 17.02.00 (some what agree) 10 10.03.00 (agree moderately) 16 16.04.00 (agree to a great extent) 20 20.05.00 (strongly agree) 37 37.0Total 100 100.0

From the 73 (73%) responses generated for weights 3, 4 and 5, indicate

that the investors agree that current market price is an important indicator

before investing in new issues.

17%

10%

16%20%

37% 1.00

2.00

3.00

4.00

5.00

42

2. The decision of investment based on advice from the broker,

received the following responses:

Weights given No. of respondents Percentage1.00 (least agree) 31 31.02.00 (some what agree) 18 18.03.00 (agree moderately) 27 27.04.00 (agree to a great extent) 13 13.05.00 (strongly agree) 11 11.0Total 100 100.0

The responses generated for the weights 3, 4 and 5 indicate that 51 (51%)

of investors depend on the investment advice from the broker for investing

in primary market.

31%

18%27%

13%

11%

1.00

2.00

3.00

4.00

5.00

43

3. Personal analysis is the self-evaluation of the information contained

in the offer document by the investors. The decision of investment based

on personal analysis generated the following responses:

Weights given No. of respondents Percentage1.00 (least agree) 8 8.02.00 (some what agree) 12 12.03.00 (agree moderately) 17 17.04.00 (agree to a great extent) 23 23.05.00 (strongly agree) 40 40Total 100 100.0

The 80 (80%) responses generated for weights 3, 4 and 5 together indicate

that investors do personal analysis of the offer document before investing

in the issue.

8%12%

17%

23%

40% 1.00

2.00

3.00

4.00

5.00

44

4. The distribution of investors who may sell shares after allotment is

made is as given below:

Weights given No. of respondents Percentage1.00 (least agree) 27 27.02.00 (some what agree) 13 13.03.00 (agree moderately) 23 23.04.00 (agree to a great extent) 18 18.05.00 (strongly agree) 19 19.0Total 100 100.0

60 respondents (60%), have indicated that they may sell shares after

allotment in the primary market issues.

27%

13%

23%

18%

19%

1.00

2.00

3.00

4.00

5.00

45

5. The distribution of investors, using analyst’s recommendations,

privately circulated, published or broadcasted is given as below:

Weights given No. of respondents Percentage1.00 (least agree) 17 17.02.00 (some what agree) 12 12.03.00 (agree moderately) 23 23.04.00 (agree to a great extent) 26 26.05.00 (strongly agree) 22 22.0Total 100 100.0

The responses generated for the weights 3, 4 and 5 together indicate that

71 respondents (71%) use analyst recommendations for the investment

decisions in the primary market investments.

17%

12%

23%

26%

22%

1.00

2.00

3.00

4.00

5.00

46

FACTORS AFFECTING PRIMARY MARKET ISSUES

Respondents gave ranks from 1 (most important) to 7 (least important) on

various factors affecting the primary market issues. These ranks were

summarized and also tabulated according to the respondent’s responses.

1. Issue price

Ranks given to issue price by respondents:

1.0 2.0 3.0 4.0 5.0 6.0 7.032 21 17 11 6 5 8

Ranks given to issue price by respondents

32

21

17

11

6 58

0

5

10

15

20

25

30

35

1.0 2.0 3.0 4.0 5.0 6.0 7.0

81 (81%) respondents gave issue price the first four ranks indicating that

it’s an important factor affecting primary market situation.

47

2. Information availability

Ranks given by various respondents based on information availability are

given as below:

1.0 2.0 3.0 4.0 5.0 6.0 7.021 20 17 14 16 6 6

Ranks given by various respondents based on information availability

21 20

17

1416

6 6

0

5

10

15

20

25

1.0 2.0 3.0 4.0 5.0 6.0 7.0

72 (72%) respondents have indicated that they would rank information

availability in the first four ranks. Thus, indicating that information

availability is an important factor affecting primary market issues.

48

3. Market price immediately after listing of securities and within the

first week

The combined ranks given to market price after listing are given as below:

1.0 2.0 3.0 4.0 5.0 6.0 7.015 17 19 16 13 11 9

The combined ranks given to market price after listing

1517

19

16

1311

9

02468101214161820

1.0 2.0 3.0 4.0 5.0 6.0 7.0

67 (67%) respondents gave market price after listing as an important factor

affecting primary market condition based on the first four ranks assigned

by them.

49

4. Liquidity after listing

The ranks given by respondents for liquidity after listing are as below:

1.0 2.0 3.0 4.0 5.0 6.0 7.011 13 17 17 20 11 11

Ranks given by respondents for liquidity after listing

1113

17 17

20

11 11

0

5

10

15

20

25

1.0 2.0 3.0 4.0 5.0 6.0 7.0

58 (58%) respondents gave first 4 ranks to liquidity after listing as a factor

affecting primary market.

50

5. Secondary market situation

The rankings given by respondents to secondary market situation as a

factor affecting primary market are as given below:

1.0 2.0 3.0 4.0 5.0 6.0 7.014 18 16 15 15 11 11

The rankings given by respondents to secondary market situation

14

1816

15 15

11 11

02468101214161820

1.0 2.0 3.0 4.0 5.0 6.0 7.0

63 (63%) respondents ranked secondary market in the first four ranks, as a

factor affecting primary market.

51

6. Lead managers’ image

The ranks given by the respondents to lead managers’ image as a factor

affecting primary market situation are as below:

1.0 2.0 3.0 4.0 5.0 6.0 7.08 14 14 16 13 17 18

The ranks given by the respondents to lead managers’ image

8

14 1416

13

1718

02468101214161820

1.0 2.0 3.0 4.0 5.0 6.0 7.0

The first four ranks were given to lead managers’ image by 52 (52%)

respondents.

52

7. Regulatory environment

The ranks given by the respondents to the regulatory environment, as a

factor affecting primary market, are given as below:

1.0 2.0 3.0 4.0 5.0 6.0 7.011 11 12 10 14 20 22

The ranks given by the respondents to the regulatory environment

11 11 1210

14

2022

0

5

10

15

20

25

1.0 2.0 3.0 4.0 5.0 6.0 7.0

44 (44%) respondents to regulatory environment gave the top four ranks.

56(56%) respondents gave the last three ranks to the regulatory

environment as a factor affecting primary market situation.

53

LIMITATIONS

The following limitations can be pointed out from the research that I

conducted in relation to the research problem:

1. The sample size chosen for the questionnaire was only 100 and that may

not represent the true picture of the investor’s perception about the Indian

primary market.

2. The research got confined to the city of New Delhi and there also it was

conducted in places adjoining Religare.

3. Nearly 80% of the respondent belonged to the age group of 20-40 years

and only 20% were above 40 years old. So, in collecting the responses the

opinion of the experience and aged people were not available. So, the

findings may not be correct when we think about the opinion of the elderly

people about the primary market.

4. The people who were selected for the questionnaire were done on the

basis of simple random sampling. So, there were certain cases in which the

person selected did not had any current investments in securities market.

54

THE CONCLUSION

In the first part of the study, the decisions taken by small investors while

investing in equity primary markets were studied. The decisions studied

were investment in listed companies with good current market price,

investment based on the advice from the broker, personal analysis of the

offer document, selling shares after allotment and using analysts’

recommendations in investment decisions. 73% of investors indicated that

current market price is important. 51% investors use investment advice

from the broker. 80% of the investors do personal analysis of the offer

document before investing. 60% indicated that they may sell shares after

allotment. 71% investors use analysts’ recommendations in the investment

decisions. This indicates the importance given to current market price,

personal analysis and analysts recommendations.

In the second part of the study, factors affecting primary market situation

are studied. These factors are issue price, information availability, market

price after listing, liquidity after listing, secondary market situation, lead

managers’ image and regulatory environment. The issue price emerges as

one of the important factor affecting primary market issues with 81% of

respondents giving first four ranks to issue price. 72% respondents gave

first four ranks to information availability as a factor affecting primary

market situation.

67% of respondents gave market price after listing as an important factor

affecting primary market condition. 58% respondents gave liquidity as a

factor affecting primary market condition. 63% of the respondents ranked

secondary market situation as an important factor affecting primary market

55

situation. 52% of the respondents ranked lead managers image as an

important factor affecting primary market situation. 44% of the

respondents ranked regulatory environment as an important factor

affecting primary market situation.

Securities and Exchange Board of India (SEBI) – National Council for

Applied Economic Research (NCAER) report (June 2000) indicates that

despite the expansion of the securities market, a very small percentage

(1.4%) household savings is channeled into the securities market.

Out of 12.1 million equity investors, 84% have invested in equity market

through primary market. Thus primary markets play an important role in

bringing investments into equity markets.

Also the report indicates that 80% of equity investor households were first

generation investors. So retaining their confidence is important. Report has

also indicated that there is a decrease in preference for equity due to the

losses made in investments by the investors in equity markets.

These losses in primary market are due to lower market price after listing.

The study conducted on investor confidence also indicated the importance

of issue price and market price, which were given an overall first and third

respectively.

SEBI – NCAER report also indicated that safety and liquidity are two

primary considerations for choosing an asset. Safety in primary market

implies that market price after listing should not fall below the issue price.

Numbers of issues are trading at a discount to the issue price. Thus again

56

issue price and market price relationship is an important concern, which

needs attention.

Liquidity in primary market implies ability to sell shares any time after

listing without a substantial loss in investment value. Liquidity was ranked

fourth in the investor confidence survey only behind market price.

Another aspect identified by SEBI – NCAER report is that inadequate

diversification of portfolio is the main reason for lack of protection from

volatility in the market. For proper diversification, information about

investment avenues or financial assets, also macro and micro level changes

affecting market prices and understanding about diversification is

important. Thus information about the issue and how it is going to affect

ones own portfolio is to be analyzed.

The investor confidence survey also indicates that information availability

is second important factor, next to issue price. It indicates that investors

prefer personal analysis to broker’s advice.

For carrying out personal analysis also information is required. Thus

information plays an important role in investment decisions and needs of

the investors in this area also need to be addressed.

Society for Capital Market Research and Development (SCMRD) (June

2001) report indicates that the reforms made secondary market safer but

primary market is still perceived riskier than before. Thus policy initiatives

are required for reducing this perceived risk. Investors have suggested

number of recommendations in this regard.

57

RECOMMENDATIONS

The sample investors were asked to give their suggestions for

improvement of primary market situation and they gave the following

measures for strengthening primary market.

1. INFORMATION RELATED MEASURES

a. Latest and easy availability of information

b. Public information should be available

c. Education of investors

d. Transparency in the system

e. Improve awareness of investors in the primary market

f. Sensitive information should be made available to everyone at the same

time

g. Action against issue managers, analysts and company for providing over

optimistic and wrong information

h. Information related to promoters background and project

implementation experience should be available

2. SCANDALS

a. No scandals

b. Regulation to control scandals

c. Prevent corporate frauds

d. Bogus companies not to be allowed to raise funds

3. PROMOTERS

a. Strict action against cheaters

b. Moral character of Board of Directors to be checked

58

c. Only experienced promoters should be allowed

d. More transparency in activities

e. Dishonest promoters not to be allowed to raise funds

f. At least 3 years of good past performance of companies

g. At least 5 years of experience of promoters in the industry

h. Disclosure of loans taken from various sources

4. PUBLIC

a. More active investor associations to be provided

b. Public consciousness development is important

c. Understanding the riskiness associated with investment in shares

5. RELATIONSHIP WITH SHAREHOLDERS

a. Provide better service

b. Investors to have a say in decision making process

c. Better communication between top management and shareholders

d. Shareholders’ interest to be considered while companies take decisions

6. RETURNS TO SHAREHOLDERS

a. Security of investment

b. More liquidity in primary market investment

7. REGULATIONS

a. Tighter regulations

b. Stable companies allowed to enter market

c. Market price control

d. Companies with good image of disclosures only to be allowed

e. Stability of market

59

f. Transparency in operations

g. Simplified and stringent procedures to be adopted

h. Issue price should be controlled

i. Post listing performance of company to be monitored

j. Autonomy to regulatory authorities

k. Minimum standards for companies to enter market

l. Prompt action against companies with complaints

m. De-Mat account information should be proper and regular

n. Black list brokers, underwriters and merchant bankers

o. More stringent screening of securities

p. Ensure market stability.

8. GOVERNMENT

a. Improve infrastructure

b. Improve economic condition

c. Abolish taxes on investment in shares

d. Promote and attract investors

e. Consumer friendly enactments are necessary

f. Corruption to be checked at various levels

g. Correct rating of equity

h. Take steps to protect small investors

i. Develop stable policies

j. Grievance redresses machinery should be more efficient

9. INTERMEDIARIES

a. Improve faith in brokers

b. Honesty and fair dealing in brokers should be encouraged

c. Lower brokerage

60

d. Improve relationships with customers

e. Broker activities are to be regulated

f. Reduce number of brokers

g. Take action against brokers with bad conduct

h. Brokers with good research facilities to be allowed

i. Banks and Financial Institutions to play a leading role

10. MARKETS

a. Improve trust of small investors

b. Transparency of markets

c. Volatility to be checked

d. Better IPO Grading mechanism

e. Market vigilance is important

f. Proper audit of exchanges should take place

g. Improve liquidity

h. Allow good issue managers to manage issues

i. Delisting of companies should be avoided

j. Proper information on post listing activities should be made available by

stock exchanges to investors

k. Renew faith in the long-term

l. Ensure new investors’ confidence in the market

m. More investment avenues to be made available

n. Small investors to get firm allotment

o. Liquidity should be improved

61

BIBLIOGRAPHY

WEBSITES:

http://www.nseindia.com

http://www.sebi.gov.in

http://www.investor.sebi.gov.in

http://www.bseindia.com

http://www.religare.in

www.google.com

www.wikipedia.org

http://investopedia.com

www.primedatabase.com

BOOKS:

Bhalla V. K., Security Analysis And Portfolio Management, 8th Edition, S.

Chand & Company Ltd. Pg. 44 – 54.

Chandra Prasanna, Investment Analysis And Portfolio Mangement, 2nd

Edition, TMH Publishing Company Limited. Pg. 84 - 89.

Pandey I. M., Financial Management, 9th Edition, Vikas Publishing House

Pvt. Ltd. Pg. 417 – 424.

NEWSPAPER ARTICLES READ:

Who will protect the small investor, Economic Times, 11th July, 1994Who cares for small investors?, Economic Times, 10th Jan, 2001Small investors don't get share of pie, Asian Age, 5th Feb, 2003

62

QUESTIONNAIRE

Dear respondent, your valuable time and effort in filling this questionnaire

are highly appreciated. The information collected through this

questionnaire will be used for academic purpose only.

Personal details:

Name: ________________________ Age: _______

Occupation: ____________________

PART I: Decisions.

Given below are some of the decisions taken by the individuals for

investing in primary market.

If you strongly agree put a tick (√) under 5 and if you least agree put a tick

(√) under 1. Points 2, 3 and 4 refer to various levels of agreement starting

from somewhat agree, agree moderately and agree to a great extent. Please

tick relevant box as per your choice. I request you to tick only one box per

decision.

Decision 1 2 3 4 5

1. I invest in primary market issues of listed [ ] [ ] [ ] [ ] [ ]

companies with good current market price.

2. Investment decision is based on advice from [ ] [ ] [ ] [ ] [ ]

the broker.

3. I invest in shares based on personal analysis. [ ] [ ] [ ] [ ] [ ]

63

4. I sell shares after allotment. [ ] [ ] [ ] [ ] [ ]

5. I use analyst’s recommendations either [ ] [ ] [ ] [ ] [ ]

privately circulated, published or broadcasted.

Part 2: Factors affecting equity primary market issues.

Please rank the following factors in the order of decreasing importance, 1

highest and 7 lowest.

Factors Rank

a. Issue price ____

b. Information availability ____

c. Market price immediately after listing ____

d. Liquidity after listing ____

e. Secondary market situation ____

f. Lead managers image ____

g. Regulatory environment ____

Part 3: Revival measures

What important measures need to be undertaken to strengthen primary

market situation?

a. _______________________________________________________

b. _______________________________________________________

c. _______________________________________________________

d. _______________________________________________________

e. _______________________________________________________

64