At present, such a system exists in the ‘primary’ or IPO market. Sebi is exploring bringing the ‘fund-blocking mechanism’ to the secondary stock market. Known as ASBA or Application Supported by Blocked Amount, this method is mandatory for investing in initial public offerings (IPOs).
Year in Review: There’s an Esop fable in startup Inc’s IPO run
Initial public offerings of eight new-age internet companies in 2024 revealed a significant disparity in wealth creation between startup founders and employees. Founders amassed nearly