State-owned insurer LIC has written a letter to the Securities & Exchange Board of India (SEBI) recently, asking for price secrecy in the bidding process for IPOs and FPOs, a source said. “LIC wrote a letter to SEBI after the Follow-on Public Offer (FPO) of the Rural Electrification Corporation in March this year, asking the regulator for price secrecy in the French Auction bids of institutional investors,” the source closely connected to the development told to reporters.

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French auction gives institutional investors the freedom to place bids above the floor price and preference is given to those with higher bids.

However, LIC has said disclosure of bid prices gives unnecessary advantage to last minute entrants as in the case in the REC FPO.

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