Right Compensation
This refers to your edit "Be pragmatic, SEBI (ET,31/12/09).As rightly indicated,SEBI has to ensure that Perpetrators of Fraud do not go scot free and make money exploting the illiteracy of investors or the system and procedure for IPOs prescribed by SEBI.
It needs to be made compulsory for all companies going for IPOs to keep a minimum margin say 0.05 % out of the subscription money towards The Investor Protection Fund and in case the company does not adhere to the prescibed standards of SEBI , the investors should be compensated. The compensation should not exceed the subscrition money.

Dr.T.V.Gopalakrishnan
(This appeared in ET Dt,2/01/10