Underwriting obligations require lead managers and syndicate members to subscribe for rejected bids and cover under subscription. Under Regulation 136 issuers must, before filing the prospectus or red herring prospectus, enter into underwriting agreements with registered merchant bankers/stock brokers (for non book built offers) or with lead managers and syndicate members (for book built offers) specifying the number of securities to be subscribed at prices not less than the issue price and disclosing such underwriting. For book built issues, lead managers and syndicate members underwrite subject to specified exclusions for offers to qualified institutional buyers; lead managers bear minimum underwriting obligations and must cover syndicate defaults, and subscriptions are limited to fulfilling underwriting commitments.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Underwriting obligations require lead managers and syndicate members to subscribe for rejected bids and cover under subscription.
Under Regulation 136 issuers must, before filing the prospectus or red herring prospectus, enter into underwriting agreements with registered merchant bankers/stock brokers (for non book built offers) or with lead managers and syndicate members (for book built offers) specifying the number of securities to be subscribed at prices not less than the issue price and disclosing such underwriting. For book built issues, lead managers and syndicate members underwrite subject to specified exclusions for offers to qualified institutional buyers; lead managers bear minimum underwriting obligations and must cover syndicate defaults, and subscriptions are limited to fulfilling underwriting commitments.
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