Maxima Limited proposes to issue a 5 crore specified securities offered @ ₹ 400 per share. The total specified securities offered, also include offer made to: Qualified Institutional Buyers (QIBs)-3 crore specified secur

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2024
Maxima Limited proposes to issue a 5 crore specified securities offered @ ₹ 400 per share. The total specified securities offered, also include offer made to: Qualified Institutional Buyers (QIBs)-3 crore specified securities Retail Individual Investors (RII) – 50 lakh specified securities. Considering the above facts, comment on: How many specified securities can Mr. X (a retail investor) apply in the net offer category?

Answer & Explanation:

As per Regulation 2(1)(z)(vv) of SEBI (Issue of Capital and Disclosures) Requirements Regulations, 2018, 'retail individual shareholder' means a shareholder who applies or bids for specified securities for a value of not more than two lakhs rupees. Mr. X as an Retail Individual Investor (RII), can apply for specified securities for a value of up to ₹ 2 Lakhs in the category of RII which is 50 lakh specified securities in the given case.

Topics: Public Issue of Securities

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