The estimated issue related expenses are US $ 35 million, whether it is within the limit to incur ?
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2019
The estimated issue related expenses are US $ 35 million, whether it is within the limit to incur ?
Answer & Explanation:
The issue related expenses shall not exceed 4% (4% of 400 US $ million=US$ 16 million) of issue size and in case of private placement, shall not exceed 2% (2% of 400 US $ million= US $ 8 million) of the issue size. US $ 35 million is not within the prescribed limit.
Topics: SEBI (ICDR) Regulations, 2018
Related Questions in this Topic
- You are the Company Secretary of Peeka Ltd., a Small and Medium Enterprise (SME). The Managing Director of your company ...
- If the issuing company fails to refund the entire subscription amount within the stipulated period, it is liable to pay ...
- The issuing company is not listed in its home country; and
- The issuing company is prohibited to issue securities by the regulatory body in Australia;
- At any given time there shall be two denominations of IDR of the issuing company;