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NEW ISSUE MARKET (Primary Market) The Functions » Origination » Underwriting » Distribution .
PARTIES INVOLVED IN THE NEW ISSUE MARKET .
Managers to the Issue Registrar to the Issue Underwriters Bankers to the Issue Advertising Agents The Financial Institutions .
GOVERNMENT AND STATUTORY AGENCIES SECURITIES EXCHANGE BOARD OF INDIA REGISTRAR OF COMPANIES RESERVE BANK OF INDIA(If the project involves foreign investment) STOCK EXCHANGES where the issue is going to be listed INDUSTRIAL LICENSING AUTHORITIES POLLUTION CONTROL AUTHORITIES(Clearance for the project has to be stated in the prospectus) .
COLLECTION CENTRES PLACEMENT OF THE ISSUE OFFER THROUGH PROPECTUS BOUGHT OUT DEALS (Offer for Sale) PRIVATE PLACEMENT RIGHTS ISSUE BOOK BUILDING .
PRIVATE PLACEMENT COST EFFECTIVE TIME EFFECTIVE STRUCTURE EFFECTIVENESS ACCESS EFFECTIVE PRIVATE PLACEMENT IN INDIA .
PRICING OF NEW ISSUES » At Premium » At Par Value ALLOTMENT OF SHARES .
Factors to be considered by the Investors Promoters Credibility Efficiency of the Management Project Details Product Financial Data Litigation's Risk Factors Auditors Report Statutory Clearance Investor Service .
Investors Protection in the Primary Market Project Appraisal Underwriting Disclosures in the Prospectus Clearance by the Stock Exchange Signing by the Board of Directors SEBI¶s Role Redressal of Investors Grievances .
Factors Needed to Make the Investor Protection Effective INVESTORS¶ AWARENESS STRICT NORMS FOR PREMIUM FIXATION SAFETY NETS PUNITIVE ACTION PROMOTERS STAKE .
Recent Trends in the Primary Market AGRESSIVE PRICING POOR LIQUIDITY LOW RETURNS LOW VOLUME ECONOMIC SLOW DOWN .
MEASURES TAKEN TO REVIVE THE MARKET .
A listed company having immediate three years of dividend paying track record only can access the market If a manufacturing company did not have such a track record. it could access the public issued market provided its project was appraised by the financial institution or a scheduled commercial bank and such appraising entity is also participating in the project fund The companies were required to complete the allotment of securities within 30 days of the closure of the issued It would be necessary for a corporate body making a public issued to have atleast five public share holders for every Rs.1 lakh of the net capital offer made to the public SEBI does not vet offer documents of companies having track record of 3 years dividend payment Removal of mandatory requirement of 90 per cent minimum subscription clause in cases of offer for sale .
5000 from Rs. Timely information would now be available to the public SEBI has directed different stock exchanges to segregate the cash flow statement of all companies that came out with IPO since 1992-93 and are listed in the exchange to have a check over these companies SEBI abolished the fixed par value concept and. Reducing the minimum application size for subscribing to public issue from Rs. instead companies can fix the par value of the shares . promoters could bring in their own money or procure subscription from elsewhere within 60 days of the closure of the issue subject to such disclosures in the offer document SEBI lifted the provision of the lock in period for promoters¶ contribution in case of listed companies with 3 years track record of dividend SEBI has made it mandatory to disclose unaudited results of companies for every quarter.2000 In case of non-underwritten public issues.