BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Register of companies
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Underwriter
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Investment bank
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Registar of Issues
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Detailed explanation-1: -Which of the following is not necessarily involved in an IPO process? Notes: Underwriter, Investment bank and Registar of Issues are necessarily involved in an IPO process.
Detailed explanation-2: -When a company decides to go public, it employs one or more teams of investment bankers or underwriters. These teams help the company to carry out the IPO process. Upon getting approval from the market regulator, the date for floating the IPO is set. Following this, a financial prospectus is released.
Detailed explanation-3: -The applicant company should have been listed on any other recognized Stock Exchange for at least last three years or listed on the exchange having nationwide trading terminals for at least six months. Minimum average daily turnover during last 6 months (value)-Rs. 10 lakhs.
Detailed explanation-4: -The IPO process in India generally takes 4-6 months and involves filing a draft prospectus approval of SEBI. After that, the company will issue a public notice inviting applications from interested investors. It will then allot shares to successful applicants based on the demand received.