Comment on the following: Book-building process of determining price of a public issue is preferred in case of initial public offer (IPO) while fixed price process is used for further public offer (FPO).

The statement is false. Fixed price process and Book Building process are pricing mechanisms in the issue of shares through public offer. When the issuer at the outset decides the issue price and mentions it in the Offer Document, it is commonly known as "Fixed price issue". When the price of an issue is discovered on the basis of demand received from the prospective investors at various price levels, it is called "Book Built issue". A company, whether issues shares through initial public offer (IPO) or Further Public Offer (FPO) has the option to choose the pricing mechanism, under Fixed Price Issue or Book Built issue, subject to conditions specified under SEBI (ICDR) Regulations 2009.