The Securities and Exchange Board of India (Sebi) has decided to make a grading of initial public offerings (IPOs) by credit rating agencies mandatory. Numerous experts have expressed concern that grading equity issuances may not be a workable idea, as it is completely different from rating bond issuances. Susan Thomas, assistant professor at Indira Gandhi Institute of Development Research, in Mumbai says, “There is universal consensus that this is a bad idea.”

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