Banks selling IPO shares within a week, experts call for RBI explanation

Amid a surge in number and demand of Initial Public offerings (IPOs) in the Indian stock market, a recent SEBI report has revealed some interesting behaviour of investors in the IPO market.

The report says that about 80 per cent of the banks sell IPO shares within a week of listing. This swift exit strategy starkly contrasts with the approach of mutual funds, which have the highest retention rate for IPO shares.