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No, IPO grading is not optional. A company which has filed the DRAFT OFFER document for its IPO with SEBI, on or after 1ST May, 2007, is required to obtain a grade for the IPO from at least one CRA.

No, IPO grading is not optional. A company which has filed the draft offer document for its IPO with SEBI, on or after 1st May, 2007, is required to obtain a grade for the IPO from at least one CRA.

For a PUBLIC issue, you can know the status by CALLING the REGISTRAR (you will know about the registrar on the Highlights Page of the issue) after 30 to 40 days from the closing date of the issue. However, in a BOOK building issue, you can know the status by calling the registrar after 20 days from the closing date. 

For a public issue, you can know the status by calling the registrar (you will know about the registrar on the Highlights Page of the issue) after 30 to 40 days from the closing date of the issue. However, in a book building issue, you can know the status by calling the registrar after 20 days from the closing date. 

A company making an IPO issue to public can reserve some shares on "ALLOTMENT on firm basis" for some categories as SPECIFIED in DIP guidelines. Allotment on firm basis indicates that allotment to the investor is on firm basis. DIP guidelines provide for maximum % of shares, which can be reserved on firm basis. The shares to be allotted on "firm allotment category" can be ISSUED at a PRICE different from the price at which the net offer to the public is made provided that the price at which the security is being OFFERED to the applicants in firm allotment category is higher than the price at which securities are offered to public.

A company making an IPO issue to public can reserve some shares on "allotment on firm basis" for some categories as specified in DIP guidelines. Allotment on firm basis indicates that allotment to the investor is on firm basis. DIP guidelines provide for maximum % of shares, which can be reserved on firm basis. The shares to be allotted on "firm allotment category" can be issued at a price different from the price at which the net offer to the public is made provided that the price at which the security is being offered to the applicants in firm allotment category is higher than the price at which securities are offered to public.

The red herring PROSPECTUS may contain either the floor PRICE for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing press release and also indicating the change on the relevant website and the TERMINALS of the syndicate members. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not EXCEEDING thirteen days.

The red herring prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing press release and also indicating the change on the relevant website and the terminals of the syndicate members. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding thirteen days.

Any safety net scheme or buy-back arrangements of the shares proposed in any public issue shall be finalized by an issuer company with the LEAD merchant banker in ADVANCE and disclosed in the prospectus. Such buy back or safety net arrangements shall be made available only to all original resident individual allottees limited up to a maximum of 1000 shares per allottee and the offer is KEPT open for a period of 6 MONTHS from the last date of dispatch of securities. The details regarding Safety Net are covered under Clause 8.18 of DIP Guidelines.

Any safety net scheme or buy-back arrangements of the shares proposed in any public issue shall be finalized by an issuer company with the lead merchant banker in advance and disclosed in the prospectus. Such buy back or safety net arrangements shall be made available only to all original resident individual allottees limited up to a maximum of 1000 shares per allottee and the offer is kept open for a period of 6 months from the last date of dispatch of securities. The details regarding Safety Net are covered under Clause 8.18 of DIP Guidelines.

Pricing of an IPO issue where ONE category is OFFERED shares at a price different from the other category is called differential pricing. In DIP Guidelines differential pricing is allowed only if the SECURITIES to applicants in the firm allotment category is at a price higher than the price at which the NET offer to the public is made. The net offer to the public means the offer made to the Indian public and does not include firm allotments or reservations or PROMOTERS' contributions.

Pricing of an IPO issue where one category is offered shares at a price different from the other category is called differential pricing. In DIP Guidelines differential pricing is allowed only if the securities to applicants in the firm allotment category is at a price higher than the price at which the net offer to the public is made. The net offer to the public means the offer made to the Indian public and does not include firm allotments or reservations or promoters' contributions.

The SEBI Manual is SEBI AUTHORIZED publication that is a comprehensive databank of all relevant Acts, RULES, Regulations and Guidelines that are related to the functioning of the Board. The DETAILS PERTAINING to the Acts, Rules, Regulations, Guidelines and Circulars are PLACED on the SEBI website under the "Legal Framework" section. The periodic updates are uploaded onto the SEBI website regularly. 

The SEBI Manual is SEBI authorized publication that is a comprehensive databank of all relevant Acts, Rules, Regulations and Guidelines that are related to the functioning of the Board. The details pertaining to the Acts, Rules, Regulations, Guidelines and Circulars are placed on the SEBI website under the "Legal Framework" section. The periodic updates are uploaded onto the SEBI website regularly. 

In the pre-issue process, the Lead Manager (LM) takes up the due diligence of company's operations/ management/ business plans/ legal etc. Other ACTIVITIES of the LM include drafting and design of Offer documents, Prospectus, statutory advertisements and memorandum containing salient features of the Prospectus. The BRLMs shall ENSURE compliance with stipulated requirements and completion of prescribed formalities with the Stock Exchanges, RoC and SEBI including finalisation of Prospectus and RoC filing. Appointment of other intermediaries viz., Registrar(s), Printers, Advertising Agency and Bankers to the Offer is ALSO included in the pre-issue processes.

The LM also draws up the various marketing strategies for the issue. The post issue activities including management of escrow accounts, coordinate non-institutional ALLOCATION, intimation of allocation and dispatch of REFUNDS to bidders etc are performed by the LM. The post Offer activities for the Offer will involve essential follow-up steps, which include the finalization of trading and dealing of instruments and dispatch of certificates and demat of delivery of shares, with the various agencies connected with the work such as the Registrar(s) to the Offer and Bankers to the Offer and the bank handling refund business. The merchant banker shall be responsible for ensuring that these agencies fulfill their functions and enable it to discharge this responsibility through suitable agreements with the Company.

In the pre-issue process, the Lead Manager (LM) takes up the due diligence of company's operations/ management/ business plans/ legal etc. Other activities of the LM include drafting and design of Offer documents, Prospectus, statutory advertisements and memorandum containing salient features of the Prospectus. The BRLMs shall ensure compliance with stipulated requirements and completion of prescribed formalities with the Stock Exchanges, RoC and SEBI including finalisation of Prospectus and RoC filing. Appointment of other intermediaries viz., Registrar(s), Printers, Advertising Agency and Bankers to the Offer is also included in the pre-issue processes.

The LM also draws up the various marketing strategies for the issue. The post issue activities including management of escrow accounts, coordinate non-institutional allocation, intimation of allocation and dispatch of refunds to bidders etc are performed by the LM. The post Offer activities for the Offer will involve essential follow-up steps, which include the finalization of trading and dealing of instruments and dispatch of certificates and demat of delivery of shares, with the various agencies connected with the work such as the Registrar(s) to the Offer and Bankers to the Offer and the bank handling refund business. The merchant banker shall be responsible for ensuring that these agencies fulfill their functions and enable it to discharge this responsibility through suitable agreements with the Company.

The investor is entitled to receive a Confirmatory Allotment NOTE (CAN) in case he has been allotted shares within 15 days from the DATE of closure of a book Built issue. The registrar has to ensure that the demat CREDIT or refund as applicable is COMPLETED within 15 days of the closure of the book built issue.

The investor is entitled to receive a Confirmatory Allotment Note (CAN) in case he has been allotted shares within 15 days from the date of closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 15 days of the closure of the book built issue.

'Retail individual INVESTOR' means an investor who applies or bids for SECURITIES of or for a VALUE of not more than Rs.2,00,000.

'Retail individual investor' means an investor who applies or bids for securities of or for a value of not more than Rs.2,00,000.

For a PUBLIC issue, you can KNOW the status by calling the registrar (you will know about the registrar on the Highlights Page of the issue) after 30 to 40 days from the closing date of the issue. However, in a book building issue, you can know the status by calling the registrar after 20 days from the closing date.

For a public issue, you can know the status by calling the registrar (you will know about the registrar on the Highlights Page of the issue) after 30 to 40 days from the closing date of the issue. However, in a book building issue, you can know the status by calling the registrar after 20 days from the closing date.

Book RUNNING LEAD Manager appointed by the issuer will intimate to the exchange the LIST of members who are ELIGIBLE to participate in the issue. These members will be allowed to enter the bids in the IPO.

Book Running Lead Manager appointed by the issuer will intimate to the exchange the list of members who are eligible to participate in the issue. These members will be allowed to enter the bids in the IPO.

Here, the IPO issuer's management gives its VIEW on the Internal and external risks faced by the company. Here, the company also makes a note on the forward-looking statements. This information is DISCLOSED in the initial pages of the DOCUMENT and it is also clearly disclosed in the abridged prospectus. It is generally advised that the investors should go through all the risk factors of the company before MAKING an investment decision. 

Here, the IPO issuer's management gives its view on the Internal and external risks faced by the company. Here, the company also makes a note on the forward-looking statements. This information is disclosed in the initial pages of the document and it is also clearly disclosed in the abridged prospectus. It is generally advised that the investors should go through all the risk factors of the company before making an investment decision. 

The Central Listing Authority's , CLA, functions have been detailed under Regulation 8 of SEBI (Central Listing Authority) Regulations, 2003 (CLA Regulations) ISSUED on August 21, 2003 and amended up to October 14, 2003. In brief, it covers processing applications for letter precedent to listing fromapplicants; to make recommendations to the Board on issues pertaining to the protection of the interest of the investors in securities and development and regulation of the securities MARKET, including the listing agreements, listing conditions and disclosures to be made in offer documents; and; to undertake any other functions as may be delegated to it by the Board from time to time. SEBI as the regulator of the securities market examines all the policy matters pertaining to issues and will continue to do so even during the existence of the CLA. Since the CLA is not yet operational, the reply to this question WOULD be updated thereafter.

The Central Listing Authority's , CLA, functions have been detailed under Regulation 8 of SEBI (Central Listing Authority) Regulations, 2003 (CLA Regulations) issued on August 21, 2003 and amended up to October 14, 2003. In brief, it covers processing applications for letter precedent to listing fromapplicants; to make recommendations to the Board on issues pertaining to the protection of the interest of the investors in securities and development and regulation of the securities market, including the listing agreements, listing conditions and disclosures to be made in offer documents; and; to undertake any other functions as may be delegated to it by the Board from time to time. SEBI as the regulator of the securities market examines all the policy matters pertaining to issues and will continue to do so even during the existence of the CLA. Since the CLA is not yet operational, the reply to this question would be updated thereafter.

Reservation on Competitive BASIS is when allotment of shares is made in proportion to the shares APPLIED for by the concerned reserved categories. Reservation on competitive basis can be made in a public issue to the Employees of the company, Shareholders of the promoting COMPANIES in the case of a new company and shareholders of group companies in the case of an existing company, INDIAN Mutual Funds, FOREIGN Institutional Investors (including non resident Indians and overseas corporate bodies), Indian and Multilateral development Institutions and Scheduled Banks.

Reservation on Competitive Basis is when allotment of shares is made in proportion to the shares applied for by the concerned reserved categories. Reservation on competitive basis can be made in a public issue to the Employees of the company, Shareholders of the promoting companies in the case of a new company and shareholders of group companies in the case of an existing company, Indian Mutual Funds, Foreign Institutional Investors (including non resident Indians and overseas corporate bodies), Indian and Multilateral development Institutions and Scheduled Banks.

Most of the issue complaints PERTAIN to non-receipt of refund or allotment, or delay in receipt of refund or allotment and payment of interest thereon. These complaints shall be made to the post issue Lead Manager, who in TURN will take up the matter with registrar to redress the complaints. In case the investor does not receive any reply within a reasonable TIME, investor may complain to SEBI, OFFICE of investors Assistance.

Most of the issue complaints pertain to non-receipt of refund or allotment, or delay in receipt of refund or allotment and payment of interest thereon. These complaints shall be made to the post issue Lead Manager, who in turn will take up the matter with registrar to redress the complaints. In case the investor does not receive any reply within a reasonable time, investor may complain to SEBI, Office of investors Assistance.

Soft underwriting is when an underwriter agrees to buy the shares at later stages as soon as the pricing process is complete. He then, immediately PLACES those shares with INSTITUTIONAL players. The risk faced by the underwriter as such is reduced to a small window of time. Also, the soft underwriter has the option to invoke a force MAJEURE (acts of GOD) clause in case there are certain factors beyond the control that can affect the underwriter's ability to place the shares with the buyers.

Soft underwriting is when an underwriter agrees to buy the shares at later stages as soon as the pricing process is complete. He then, immediately places those shares with institutional players. The risk faced by the underwriter as such is reduced to a small window of time. Also, the soft underwriter has the option to invoke a force Majeure (acts of God) clause in case there are certain factors beyond the control that can affect the underwriter's ability to place the shares with the buyers.

Yes. He can bid in a book-built ISSUE for a value not more than Rs.1,00,000. Any bid MADE in excess of this will be considered in the HNI CATEGORY.

Yes. He can bid in a book-built issue for a value not more than Rs.1,00,000. Any bid made in excess of this will be considered in the HNI category.

SEBI issues press releases EVERY week regarding the draft OFFER documents received and observations issued during the PERIOD. The draft offer documents are put up on the website under Reports/Documents SECTION. The final offer documents that are filed with SEBI/ROC are also put up for information under the same section. 

Copies of the draft offer documents in hard copy FORM may be obtained from the office of SEBI, Mittal Court, 'A' wing, Ground Floor, 224, Nariman Point, Mumbai - 400021 on a payment of Rs.100 or from SES, LMs etc. The soft copies can be downloaded from the SEBI website under Reports/Documents section. Some LMs also make it available on their web sites for download. The final offer documents that are filed with SEBI/ROC can also be downloaded from the same section of the website.

SEBI issues press releases every week regarding the draft offer documents received and observations issued during the period. The draft offer documents are put up on the website under Reports/Documents section. The final offer documents that are filed with SEBI/ROC are also put up for information under the same section. 

Copies of the draft offer documents in hard copy form may be obtained from the office of SEBI, Mittal Court, 'A' wing, Ground Floor, 224, Nariman Point, Mumbai - 400021 on a payment of Rs.100 or from SES, LMs etc. The soft copies can be downloaded from the SEBI website under Reports/Documents section. Some LMs also make it available on their web sites for download. The final offer documents that are filed with SEBI/ROC can also be downloaded from the same section of the website.

It MAY be understood that the regulatory mechanism does not play a ROLE in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with MERCHANT Bankers. The basis of ISSUE price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the issue price.

It may be understood that the regulatory mechanism does not play a role in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with Merchant Bankers. The basis of issue price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the issue price.

Lock-in INDICATES a freeze on the shares. SEBI (DIP) Guidelines have stipulated lock-in requirements on shares of promoters mainly to ensure that the promoters or main PERSONS who are controlling the company, SHALL continue to hold some minimum PERCENTAGE in the company after the public issue.

Lock-in indicates a freeze on the shares. SEBI (DIP) Guidelines have stipulated lock-in requirements on shares of promoters mainly to ensure that the promoters or main persons who are controlling the company, shall continue to hold some minimum percentage in the company after the public issue.

A FOLLOW on public OFFERING (FPO) is when an ALREADY LISTED company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such SCENARIO is allowed only if it is made to satisfy listing or continuous listing obligations.

A follow on public offering (FPO) is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.

Bankers to the issue, as the name suggests, carries out all the activities of ensuring that the funds are COLLECTED and transferred to the Escrow accounts. The Lead Merchant Banker SHALL ENSURE that Bankers to the Issue are appointed in all the mandatory collection centers as specified in DIP GUIDELINES. The LM also ensures follow-up with bankers to the issue to get quick ESTIMATES of collection and advising the issuer about closure of the issue, based on the correct figures.

Bankers to the issue, as the name suggests, carries out all the activities of ensuring that the funds are collected and transferred to the Escrow accounts. The Lead Merchant Banker shall ensure that Bankers to the Issue are appointed in all the mandatory collection centers as specified in DIP Guidelines. The LM also ensures follow-up with bankers to the issue to get quick estimates of collection and advising the issuer about closure of the issue, based on the correct figures.

A preferential issue is an issue of shares or of convertible securities by LISTED companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise EQUITY CAPITAL. The issuer company has to comply with the Companies Act and the requirements contained in Chapter pertaining to preferential allotment in SEBI (DIP) guidelines which inter-alia INCLUDE pricing, disclosures in notice etc.

A preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital. The issuer company has to comply with the Companies Act and the requirements contained in Chapter pertaining to preferential allotment in SEBI (DIP) guidelines which inter-alia include pricing, disclosures in notice etc.