GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Optional
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Mandatory
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Not necessary
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Not mandatory
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Detailed explanation-1: -1.As per the original Guidelines issued by SEBI on 11.6. 1992, underwriting was mandatory for full issue and minimum requirement of 90% subscription was also mandatory for each issue of capital to public. However, as per the Revised Guidelines issued by SEBI on 10.10. 94, underwriting is made optional now.
Detailed explanation-2: -[4] The Underwriting is mandatory for the public issue. The stock exchange regulations clearly specify that no stock broker is allowed to underwrite more than 5 per cent of the public issue and the concerned stock exchange should approve the appointment of broker underwriters.
Detailed explanation-3: -According to SEBI Guidelines, underwriting is not mandatory. It depends on the company but where the minimum subscriptions of 90% of the offer to the public are not received within the stipulated date, the entire amount should be refunded in full.
Detailed explanation-4: -Payment of Fees. Agreement with Corporate Body. Compliance with Rules. Change of Status. Infrastructure of Office. Experience of Key Management Executives. Capital Adequacy Requirement. No Conviction of Key Management Executives. More items