Category: FINANCIAL MARKET

TYPES OF UNDERWRITING

TORAN LAL VERMA

 TYPES OF UNDERWRITING different types of underwriting are as follows: Firm underwriting: Firm underwriting is an underwriting agreement where an underwriter agrees to buy a definite number of shares or debentures in addition to the shares or debentures he has already promised to  subscribe under the underwriting agreement. In firm underwriting, the underwriters are liable to take up the agreed number Read More …

UNDERWRITING

TORAN LAL VERMA

UNDERWRITING When a company offers shares to the public, it is mandatory requirement that minimum subscription must be achieved. Minimum subscription means that at least or more than 90% of the issue must be subscribed. If the minimum subscription is not achieved then the company has to return the amount received on the application and the issue will go in vain. the Read More …

QUALIFIED INSTITUTIONAL BUYERS

TORAN LAL VERMA

QUALIFIED INSTITUTIONAL BUYERS (QIBs) Qualified institutional buyers are institutional investors who possess a strong financial expertise and has a reputation in the financial market. They are considered to have expertise in evaluating and investing in the market. Because of their financial capabilities, they are given certain privileges under SEBI Guidelines. SEBI has defined QIBs as follows: Qualified Institutional Buyers are those Read More …