Arjun Patel wants to apply for shares in the public issue of Surya Limited. The company is offering 4 crore specified securities at ₹400 per share, out of which 2.5 crore are reserved for Qualified Institutional Buyers (

Answer 5(a) As per Regulation 47 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, a person shall not make an application in the net offer category for a number of specified securities that exceeds the total number of securities offered to the public. However, the maximum application by non-institutional investors shall not exceed total number of specified securities offered in the issue less total number of specified securities offered in the issue to qualified institutional buyers. i. Thus, Arjun Patel, being an individual, can apply as a Retail Individual Investor (RII) for specified securities for a value of up to ₹2 Lakhs in the given case. Since applications must be in multiples of ₹12,000, Arjun Patel can apply for maximum 16 applications (₹2,00,000/ ₹12,000 i.e 16.67), which equals to 480 shares at ₹400 per share (16 applications x ₹12,000 / 400) Therefore, Arjun Patel can apply maximum 480 shares in the net offer category. The maximum number of specified securities which a non-institutional investor can apply are: Particulars No. of Specified Securities Securities offered in the issue (A) 4 crore Less: Securities offered to QIBs (B) 2.5 crore Net available to non-institutional investors (A - B) 1.5 crore Thus, non-institutional investors can apply for a maximum of 1.5 crore specified securities in this issue. iii. Minimum application size: Minimum shares = Minimum application value / Issue price per share Minimum shares = ₹12,000 / ₹400 = 30 shares Therefore, an investor must apply for at least 30 shares, and applications must be made in multiples of 30.