Period of subscription
(Section 46)
(1) A public issue shall be kept open for at least three working days but not more than ten workingdays including the days for which the issue is kept open in case of revision in price band.
(2) In case the price band in a public issue made through the book building process is revised, the
bidding (issue) period disclosed in the red herring prospectus shall be extended for a minimum period
of three working days:
Provided that the total bidding period shall not exceed ten working days.
Pre-issue advertisement for public issue
Section 47
(1) Subject to the provisions of section 66 of the Companies Act, 1956, the issuer shall, afterregistering the red herring prospectus (in case of a book built issue) or prospectus (in case of fixed
price issue) with the Registrar of Companies, make a pre-issue advertisement in one English
national daily newspaper with wide circulation, Hindi national daily newspaper with wide
circulation and one regional language newspaper with wide circulation at the place where the
registered office of the issuer is situated.
(2) The pre-issue advertisement shall be in the format and shall contain the disclosures specified in
Part A of Schedule XIII
.Issue opening and issue closing advertisement for public issue (Section 48)
An issuer may issue advertisements for issue opening and issue closing advertisements, whichshall be in the formats specified in
Parts B and C of Schedule XIII.Minimum application value (Section 49)
(1) The issuer shall stipulate in the offer document, the minimum application size in terms ofnumber of specified securities which shall fall within the range of minimum application value of
five thousand rupees to seven thousand rupees.
(2) The issuer shall invite applications in multiples of the minimum application value, an illustration
whereof is given in
Schedule XIV.(3) The minimum sum payable on application shall not be less than twenty five per cent. of the issue
price:
Provided that in case of an offer for sale, the issue price payable for each specified security shall be
brought in at the time of application.
Explanation
:For the purpose of this regulation, “minimum application value” shall be with reference
to the issue price of the specified securities and not with reference to the amount payable on
application.
Allotment procedure and basis of allotment (Section 50)
(1) The allotment of specified securities to applicants other than anchor investors shall be onproportionate basis within the specified investor categories and the number of securities allotted
shall be rounded off to the nearest integer, subject to minimum allotment being equal to the
minimum application size as determined and disclosed by the issuer.
(2) The executive director or managing director of the designated stock exchange along with the
post issue lead merchant bankers and registrars to the issue shall ensure that the basis of allotment
is finalised in a fair and proper manner in accordance with the allotment procedure as specified in
Schedule XV
.Utilisation of subscription money (Section 51)
The post-issue lead merchant banker shall ensure that moneys received in respect of the issueare released to the issuer in compliance with the provisions of section 73 of the Companies Act,
1956.
Original knol - http://knol.google.com/k/narayana-rao/icdr-2009-india-public-issue-ipo-sebi/2utb2lsm2k7a/ 1840
No comments:
Post a Comment