Raman Ltd. issued 50 Lakh equity shares at a price of ₹ 200 per share. The company provided Green Shoe Option for stabilizing the post listing price of the shares. The issue was oversubscribed and it was decided that sta
CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
Raman Ltd. issued 50 Lakh equity shares at a price of ₹ 200 per share. The company provided Green Shoe Option for stabilizing the post listing price of the shares. The issue was oversubscribed and it was decided that stabilizing agent would borrow maximum number of shares permitted by SEBI (ICDR) regulations. Due to rise in price during Green Shoe Option period, only 5 Lakh shares could be bought back at the price of ₹ 180. You are required to : (iii) Calculate the amount if any, to be transferred to Investor Protection and Education Fund.
Answer & Explanation:
The Amount which should be transferred to Investor Protection and Education Fund will be calculated as follows: = 5,00,000 (200-180) = ₹ 1,00,00,000
Topics: Public Issues
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