'Fixed price process is different from book building process as regards to issue of securities'. Critically examine.

Features Fixed Price process Book building process Pricing Price at which the securities are offered/allotted is known in advance to the investor Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is known Demand Demand for the securities offered is known only after the closure of the issue Demand for the securities offered can be known everyday as the book is built. Payment Payment if made at the time of subscription wherein refund is given after allocation Payment only after allocation Price band There is fixed price. There is price band with maximum 20% difference from floor price.