Girdhar (Retail Individual Investor) had applied for Initial Public Offer of Six Sigma Ltd. through Applications Supported By Block Amount (ASBA) process. The Self Certified Syndicate Banks (SCSBs) failed to make bids in
CS Executive · Securities Laws and Capital Markets · PYQS · December 2018
Girdhar (Retail Individual Investor) had applied for Initial Public Offer of Six Sigma Ltd. through Applications Supported By Block Amount (ASBA) process. The Self Certified Syndicate Banks (SCSBs) failed to make bids in the Stock Exchange system even after the amount has been blocked. The issue was oversubscribed. Based on the SEBI guidelines/circulars, answer the following: What are the factors that have been taken into account by SEBI for finalization of uniform policy for calculation of the minimum fair compensation ?
Answer & Explanation:
According to SEBI Circular no. SEBI/HO/CFD/DIL2/CIR/P/2018/22 dated February 15, 2018, the following factors have been taken into account while finalization of uniform policy for calculation of minimum compensation payable to investors: the opportunity loss suffered by the investor due to non-allotment of shares; the number of times the issue was oversubscribed in the relevant category; the probability of allotment; and the listing gains if any on the day of listing.
Topics: SEBI (Issue of Capital and Disclosure Requirements) Regulations
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