ISSUE OF SPECIFIED SECURITIES BY SMALL AND MEDIUM ENTERPRISESSecurities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
ISSUE OF SPECIFIED SECURITIES BY SMALL AND MEDIUM ENTERPRISESSecurities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
Book building process: regulatory rules on lead book runners, electronic bidding, price band disclosure and allocation mechanics. The Schedule sets a regulatory framework for book building: a single lead book runner (with co-runners/syndicate) must underwrite issues and disclose ... Summary
Book building process: regulatory rules on lead book runners, electronic bidding, price band disclosure and allocation mechanics.
The Schedule sets a regulatory framework for book building: a single lead book runner (with co-runners/syndicate) must underwrite issues and disclose underwriting arrangements; issuers must contract with on-line stock exchange systems and appoint registered intermediaries as bidding centres. The red herring prospectus omits final price, with rules for floor price/price band disclosure and revision. Electronic linked bidding, uniform margin collection, ASBA procedures, public graphical bid displays, anchor investor allocation and lock-in, determination of final price by issuer with lead book runner, proportionate allotment rules, maintenance of books, and SEBI inspection rights are mandated. An alternate method for follow-on offers permits floor-price-based price-priority allocation to QIBs.
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