By our Commercial Correspondent
Mumbai, Sept 05 (IVC) : Individual investors sell almost 50 per cent of their shares they acquired in Initial Public Offers (IPO) within a week of listing, according to a research paper published here recently by the Securities and Exchange Board of India (SEBI).
The ‘Analysis of Investor Behaviour in Initial Public Offerings’ looks at investor decisions during an IPO.
SEBI also found that individual investors excited the IPO shares when they found a gain on listing and held their investments when returns were negative, calling this the ‘disposition offer’.
The term is used to refer to behavior where an investor prematurely sells assets that have made financial gains, even while holding on assets that are losing money, according to SEBI’s researchers.
Mutual Funds tended to stay invested longer in IPO shares and sold just three per cent within a week of listing