Primary Market » Issue of Shares
Who decides the price of an issue?
Indian primary market ushered in an era of free pricing in 1992. Following this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues, one where company and Lead Merchant Banker fix a price (called fixed price) and other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determine the final price (price discovery through book building process
- What does 'price discovery through Book Building Process' mean?
- What is the main difference between offer of shares through book building and offer of shares through normal public issue?
- What is Cut-Off Price?
- What is the floor price in case of book building?
- What is a Price Band in a book built IPO?
- Who decides the Price Band?
- What is minimum number of days for which a bid should remain open during book building?
- Can open outcry system be used for book building?
- Can the individual investor use the book building facility to make an Application?
- How does one know if shares are allotted in an IPO/offer for sale? What is the Time frame for getting refund if shares not allotted?
- How long does it take to get the shares listed after issue?
- What is the role of a 'Registrar' to an issue?
- Does NSE pnvide any facility fo!IPO?
- What is a Prospectus?
- What does ?"03:'32270 0 4 4 042 +0:907 1422(919466+0:907 1y422(91 0 4 4 04y2 +78y209:2(91979'329279466'78209:2(91/'Offer Documents'?
- What does one mean by 'Lock-in'?
- What is meant by 'Listing of Securities'?
- What is a 'Listing Agreement'?
- What does 'Delisting of securities' mean?
- What is SEBI's Role in an Issue?
- Does it mean that SEBI recommends an issue?
- Does SEBI tag make one's money safe?
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