A listed company, Nishan Hitech Ltd. issued 10 lakh equity shares at a price of ₹150 per share. The company provided Green shoe option for stabilizing the post listing price of the shares. On the day of listing of shares

As per regulation 45 (1) of the SEBI (ICDR) Regulations, 2009, the maximum number of securities that may be borrowed for the purpose of allotment or allocation of securities in excess of issue size shall not be more than 15% of the issue size. Therefore stabilizing agent can purchase only 1.5 lakh equity shares to control the price. The stabilizing agent shall remit the monies with respect to the specified securities allotted to the issue from the special bank account known as GSO Bank A/c. Any money left in the special bank account after remittance of monies to the issuer for securities allotted and deduction of expenses incurred by the stabilizing agent for the sterilization process shall be transferred to the Investor Protection and Education Fund established by the SEBI and the special bank account shall be closed soon thereafter.