JOIN US“Allotment to all these categories shall be made on proportionate basis only,” Sebi said, amending its guidelines concerning general and disclosure requirements pertaining to Indian Depository Receipts issues.
The country’s capital market regulator further pointed out that in case of underwritten issues, if the issuing company does not receive the minimum subscription of 90 per cent of the net offer, from the date of closure of the issue, the issuing company shall forthwith refund the entire subscription amount received.
Financial products
Underwriting refers to the process that a large financial service provider like a bank or investment house underatkes to assess the eligibility of a customer to receive their financial products and in case the product is not bought, the financial service provider takes them.
Securities & Exchange Board of India further pointed out that the audited financial statements should be prepared in accordance with Indian Generally Accepted Accounting Practices (GAAP), or with the International Financial Reporting Standards (IFRS) or US GAAP, for a period of three financial years immediately preceding the date of prospectus.
The report prepared by the statutory auditors of the issuing company should disclose financial statements in Indian rupees, while the issuing company would do it in Sterling Pound, Euro, Yen or US Dollar.