What is the meaning of Underwriting of securities?


-1

Underwriting of securities

 

 

 Underwriting of securities-

  • When a company offers shares to the public, it would like to ensure of the issue.
  • A company with a view to protect subscription by members of the public and with a view to enabling it to get requisite amount of share capital, will enter into an agreement with financial institutions, whereby the financial institution undertake to subscribe or find someone else to subscribe to a certain of all the shares which are not taken up the public. This underwriting by the taken up by the financial institution is called contract.
  • Type of Underwriting Contract- 1) Pure or Open underwriting

                                                   2) Firm Underwriting

                                                   3) Partial Underwriting

  • SEBI has waived the earlier stipulation of compulsory underwriting of all public issues.
  • Underwriting has now been made a voluntary proposition.

 

https://www.youtube.com/watch?v=I7aGcxqELyQ


Like it? Share with your friends!

-1

43 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format