Investments in PSUs

Dr.T.V.Gopalakrishnan , Mumbai. , says: PSU stocks are no longer a good ivestment bet since they have become more greedy than private corporates and do not have any ethics to safegurad either investors money or the Govt interest.SEBI and the Govt owe a lot in enticing middle class investors to invest in PSUs by advertisement gimmicks and exploiting the sentiments of investors.All PSU IPOs so far issued need to be investigated for their luring investors by giving attractive advertisements and quoting very high prices and not offering good dividend and bonus shares.This tendency of taking money from public and institutional investors by resorting to unethical practices by PSUs are not appreciable and justifiable. This is perhaps one of the reasons for loss of confidence in PSU IPOs and the failure of ONGs's issue held in early 2012. Most of the PSUs shares after their IPOs are quoted below the issue price and investors funds are locked indefinitely. It is time for SEBI to come out with prudential guidelines for PSU IPOs and protect investors particularly retail investors and Govt owned institutions like LICs and banks. Capital market needs to be healthy and sound and for that PSUs should be role models in attracting investments.
This is in response to an opinion poll in ET dated 24/04/12.
24 Apr 2012, 1704 hrs IST