What are the amended allocation criterion in the non-institutional investors category, if an issue is made through book-building process?
CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
What are the amended allocation criterion in the non-institutional investors category, if an issue is made through book-building process?
Answer & Explanation:
According to Regulation 32(3A) and 129(3A) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, in an issue made through the book-building process, the allocation in the non-institutional investors' category shall be as follows: One-third of the portion available to non-institutional investors shall be reserved for applicants with application size of more than ₹2 lakh and up to ₹10 lakh. Two-third of the portion available to non-institutional investors shall be reserved for applicants with application size of more than ₹10 lakh. Provided that the unsubscribed portion in either of the sub-categories specified above, may be allocated to applicants in the other sub-category of non-institutional investors.
Topics: Public Issues
Related Questions in this Topic
- With the growing use of UPI transactions in India, SEBI has also allowed in public offers to make payment for the bid, b...
- Write short notes on the following: Application Supported by Blocked Amount (ASBA)
- The facility of Application Supported by Blocked Amount (ASBA) introduced to protect the interest of investors for faste...
- A Company is planning for Initial Public Offer of its equity shares. It has decided differential pricing for retail indi...
- Who are Anchor Investors? How is allocation made to Anchor Investors?