RST Ltd is preparing to issue a 10 crore specified securities offered at ₹600 per share. The total specified securities also include offer made to: Qualified Institutional Buyers (QIBs) - 6.66 crore specified securities

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2024
RST Ltd is preparing to issue a 10 crore specified securities offered at ₹600 per share. The total specified securities also include offer made to: Qualified Institutional Buyers (QIBs) - 6.66 crore specified securities Retail Individual Investors (RII) - 1.00 crore specified securities Considering the above facts, comment on: How many specified securities can Romesh apply in the net offer category ?

Answer & Explanation:

1. 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. Assuming Romesh as Retail Individual Investor (RII), he can apply for specified securities for a value of up to ₹2 Lakhs in the category of RII which is ₹1 crore specified securities in the given case.

Topics: Public Issue of Securities

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