Private eyes crack into IPO market

A new regulation that will hold listing sponsors criminally liable for failing to perform due diligence has led to investment banks hiring investigators to check up on listing prospects.

Bankers said the new rule, to come into force soon, would help prevent listing scandals but would also make many firms unwilling to sponsor small offerings.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1287974/private-eyes-crack-ipo-market