Grey market frenzy for SBI Cards
Grey market activity for SBI Cards has started even before the announcement of its issue price. Grey market operators are offering a premium of Rs 230 per share for SBI Cards. Usually, grey market activity starts once the issue price is announced. However, of late, the trend of quoting grey market premium before the issue price announcement is catching up. According to brokers, this is the new trick of grey market operators to lure gullible investors and the trend started with the issue of CSB Bank.
Rating agencies reviewing companies have started reaching out to statutory auditors when looking through a firm's financial statements before deciding on a rating. The idea is to get a better sense of the numbers and avoid nasty surprises, according to a source. Such instances were rare earlier but have increased in recent times. A number of instances where auditors had resigned abruptly had caused investors to dump shares in a hurry. Shareholders, it seems, aren't the only ones afraid of being caught on the wrong foot.