Market regulator, SEBI is planning to come out with a policy as a part of which the retail and institutional investors will be facing a clear demarcation of the days for submitting their bids.

The step which will bring about fundamental changes in the system is going to attract more investors, as is said by the experts.

As per the new system, the institutional investors will be first asked to submit their bids, possibly in the first two days of the bidding, and then the next two days will be opened for the retail investors. This is the case when an IPO is open for four days and the system is going to be pro-rata.

This is being done since the trend has been that the retail investors watch out for the institutional investors and based on their behavior they make their decision when it comes to IPOs. But, unlike the other times, these days the institutional investors are also waiting till the last day and then take their decision, in the way hampering the capital raising activities. It is expected that the recent move will help in controlling such behaviors.