Title: Towards a rational bidding process of initial public offerings: a proposed model for secure auction based on homomorphic computation and secure hash functions
Authors: Parthajit Roy; Abhijit Roy
Addresses: Department of Computer Science, The University of Burdwan, West Bengal-713104, India ' Department of Commerce, St. Xavier's College (Autonomous), Kolkata-700016, India
Abstract: There has been a large pool of research on the factors of initial public offerings (IPO) underpricing and investors' herd behaviour that influence investment decisions in general but no attention has been paid on the security aspects of IPO bidding and allocation processes to avoid unfair and fraudulent trading activities. This paper proposes a cryptographic model for secure auction of initial public offerings in Indian context. The paper synthesises IPOs by identifying the vulnerable points in it and proposes a homomorphic computation-based cryptographic model to secure it. The model uses a cryptographic hash function-based data hiding protocol for its auction process. The total infrastructure setup has also been discussed and the security measures are analysed.
Keywords: secure auction; homomorphic computing; RSA digital signature; initial public offerings.
International Journal of Electronic Finance, 2018 Vol.9 No.2, pp.143 - 155
Received: 31 Oct 2017
Accepted: 21 Apr 2018
Published online: 24 May 2018 *