Union Budget 2012-13: Change in IPO guidelines to promote small town participation

NEW DELHI: The Finance Minister Pranab Mukherjee in his Union Budget 2012-13 speech announced a change in Initial Public offering ( IPO) guidelines to increase participation in small towns. The FM also announced allowing qualified Forifn Institutional Investors (FII) into corporate bonds. A new scheme to boost savings and the launch of Rajiv Gandhi Equity Scheme was also announced.

Budget at ET: Budget 2012 | Union Budget | Live Union Budget Blog | Railway Budget | Budget News | Economic Survey of India

The Finance Minister expects the tax free bonds to raise Rs 60,000 crore in the next financial year as compared to the sanction for Rs 30,000 crore this year.

ET comment:

FM promises tax incentive for new investors as well as tries to broaden the reach of IPOs. These make sense when you consider that the share of household savings delpoyed in capital markets has come down sharply. But will Indians switch to capital markets without pension and insurance funds being allowed to freely invest in equities, and without sorting out issues like commissions for muitual fund agents. Plus, the big question, as the Survey had pointed out, how will Indians be dissuaded from buying gold?