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Created by : Esha Johar, Risk Analyst, Irevna  | 10 20 2010 06:33:46 +0000
Industry : Equity Research/AnalyticsFunctional Area : India(Markets)
Activity:  196 views;  last activity : 04 07 2011 08:17:09 +0000

In the run-up to CIL’s public offering, which at an estimated mop-up of Rs 16,000 crore is all set to become the largest IPO, capital market intermediaries find it a blessing that the government is making all-out efforts to encourage larger retail and employee participation in PSU listings and follow-on offerings; till now, the Reliance Power IPO was the largest, raising Rs 11,700 core in 2008. So, in a way IPO's are happening more lately and when this IPO's happens there are more people  who come into the stock market trading, With so many IPO's happening do you think this will help in spreading financial Inclusion?? Share your thoughts on this..

 
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yes, IPO will help in spreading financial inclusion. In india only between 1 and 2 percent demat account of total population. It will help to people to understand capital market and to get good opportunity in financial market. Today SEBI also increased the retail investor limit in subscription for IPO from 1 lakh to 2 lakh. If forein investor is more interested in india IPO market then not indian. If indian will take more interest then deffinately help to maintain and growing india economy.
By Rajesh Kumar, PG Diploma student, ICBM-SBE, Hyderabad  | 10 26 2010 08:09:31 +0000
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Yes , Esha i found thats IPO helps in spreading financial inclusion .. it provides a great oppurtunities in share market.. most of the demat accounts are opened due to IPOs, so now a days IPO plays a very imp role.
By MITANSHU , MBA/PGDM student, ISIM  | 10 25 2010 14:01:42 +0000
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Yes, Esha. I support your school of thought to an extent. I am of the opinion that the disparity in our society is one of the factors that will put a break on the soaring growth that we are witnessing. With lack of exposure, it is difficult for many people to take the risk of investing in stocks or mutual funds. By introducing IPO's you can definitely say that the knowledge of one particular company's workforce will increase.

But, I feel that financial inclusion is a very broad term in this context. The inclusion in this case will not be plausible as the labour force may not be in a position to own scripts of high value. I believe financial inclusion should be driven by banks and institutions. The key is to educate the citizens, be it through the RDP or through the news on Doordarshan. They need to know the value their money can have in the future. This can be done only buy some sort of understanding of where the industry, company and the country is heading. 


By Akhilesh Nadgauda, Consultant, Milestone Consultants, Inc  | 10 20 2010 20:26:47 +0000
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I think it will, just imagine there are lakhs together workers in Coal India company itself, around about 4 lakh to be specific and in that around 80% of them are the basic workforce who do not have a demat account or a financial umbrella for them, but now with the companies IPO people would love to buy their own companies stocks and be a owner of it. And for that to happen many will have to open their Demat accounts to have their stocks and with so many IPO's many new people are entering Stock market trading and yes this surely helps in spreading financial inclusion..


By Esha Johar, Risk Analyst, Irevna  | 10 20 2010 06:33:46 +0000
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