Underwriting agreements must define obligations, subscription timing, remuneration, responsibilities, and fulfilment arrangements between merchant banker underwriters and corporate clients.

Merchant bankers acting as underwriters must execute an agreement with each body corporate whose issue they underwrite. The agreement must state its duration, allocate duties and responsibilities, specify the underwriting obligation, prescribe the subscription period following intimation, and set out commission or brokerage payable. It must also disclose arrangements made by the underwriter to fulfil underwriting obligations.

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