Underwriting obligations cap limits merchant bankers' aggregate exposure relative to net worth and mandates timely subscription. The amendments require merchant bankers acting as underwriters to enter written agreements with issuers specifying duration, duties, underwriting obligations, subscription timing and remuneration; prohibit indirect benefits beyond agreed commission; cap aggregate underwriting obligations relative to net worth; mandate subscription within a prescribed period upon intimation; and require maintenance of records including agreements, amounts subscribed and capital adequacy statements, with additional prohibitions on insider trading, misrepresentation and unfair competition.
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Provisions expressly mentioned in the judgment/order text.
Underwriting obligations cap limits merchant bankers' aggregate exposure relative to net worth and mandates timely subscription.
The amendments require merchant bankers acting as underwriters to enter written agreements with issuers specifying duration, duties, underwriting obligations, subscription timing and remuneration; prohibit indirect benefits beyond agreed commission; cap aggregate underwriting obligations relative to net worth; mandate subscription within a prescribed period upon intimation; and require maintenance of records including agreements, amounts subscribed and capital adequacy statements, with additional prohibitions on insider trading, misrepresentation and unfair competition.
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