TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000Guidelines for offering securities in public issues through the Stock Exchange mechanism.
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....p; November 30, 2000 To All Registered Merchant Bankers Dear Sirs, Sub: Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000Guidelines for offering securities in public issues through the Stock Exchange mechanism. The SEBI Board had considered the proposal of offering securities in public issues through the stock exchange mechanism and after considering the advantages of the....
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....stem of on-line offer of securities, the company shall also, enter into an agreement with the Regional Stock Exchange for offering securities to public through on-line system. 11A.2-2 The agreement mentioned in the above clause shall specify inter alia, the rights, duties, responsibilities and obligations of the company and stock exchange(s) inter se. The agreement may also provide for a dispute resolution mechanism between the company and the stock exchange. 11A.3 Appointment of Brokers 11A.3-1 The stock exchange, shall appoint brokers of the exchange, who are registered with SEBI, for the purpose of accepting applications and placing orders with the company. 11A.3-2 For the purposes of this Chapter, the brokers, so appointed a....
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....ad Manager shall be responsible for co-ordination of all the activities amongst various intermediaries connected in the issue/system. 11A.6-2 The names of brokers appointed for the issue alongwith the names of the other intermediaries namely Lead Managers to the issue and Registrars to the Issue shall be disclosed in the prospectus and application form. 11A.7 Mode of operation 11A.7-1 The company shall, after filing the offer document with ROC and before opening of the issue, make an issue advertisement in one English and one Hindi daily with nationwide circulation, and one regional daily with wide circulation at the place where the registered office of the issuer company is situated. 11A.7-2 The advertisement shall contain the ....
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....filled up and signed from the applicants before placing the order in the system as per "Know your client rule" as specified by SEBI and as may be modified from time to time. 11A.7-6 The broker shall, thereafter, enter the buy order in the system, on behalf of the clients and enter details including the name, address, telephone number and category of the applicant, the number of shares applied for, beneficiary ID, DP code etc. and give an order number/order confirmation slip to the applicant. 11A.7-7 The applicant may withdraw applications in terms of the Companies Act, 1956. 11A.7-8 The broker may collect an amount to the extent of 100% of the application money as margin money from the clients before he places an order on their beh....
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....llocation to their client /applicant. The broker shall ensure that each successful client/applicant submits the duly filled-in and signed application form to him along with the amount payable towards the application money. Amount already paid by the applicant as margin money shall be adjusted towards the total allocation money payable. The broker shall, thereafter, hand over the application forms of the successful applicants who have paid the application money, to the exchange, which shall submit the same to the Registrar to Issue/company for their records. 11A.7-14 The broker shall refund the margin money collected earlier, within 3 days of receipt of basis of allocation, to the applicants who did not receive allocation. 11A.7-15 The....
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....plication for the amount towards minimum subscription, the company shall allot the shares to the applicants as per these Guidelines. The Registrar to the issue shall post the share certificates to the investors or, instruct the depository to credit the depository account of each investor, as the case may be. 11A.7-21 Allotment of securities shall be made not later than 15 days from the closure of the issue failing which interest at the rate of 15% shall be paid to the investors. 11A.7-22 In cases of applicants who have applied directly or by post to the Registrar to the issue, and have not received allocation, the Registrar to the issue shall arrange to refund the application monies paid by them within the time prescribed. 11A.7-23....