tag:blogger.com,1999:blog-3202774368551476669.post3449894774624267642..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: SEBI’s Proposal to Revitalise Rights IssuesUmakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3202774368551476669.post-43254017753356244932009-03-19T15:00:00.000+05:302009-03-19T15:00:00.000+05:30Very well said indeed. The truth is that the opera...Very well said indeed. <BR/><BR/>The truth is that the operation of Efficient Market Hypothesis (which presumably is the underlying rationale of SEBI's move to bring in a diluted Rights Issue disclosure regime)is questionable in EMs.<BR/><BR/>At best, we have a weak EMH operating here. <BR/><BR/>Unless therefore, we widen that channel of disclosures in the secondary market,so that the market can factor those bits of information in the price of security, it is useless to place reliance on EMH. <BR/><BR/>Again- and here I draw from Umakant Varottil's insights on legal transplants- the regulator seems to be merely adopting EMH as a transplant and then trying to amend the law of disclosures here. This (misplaced) eclecticism masks a reluctance to learn and operate a customised Securities regulation framework for India.Anonymousnoreply@blogger.com