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Ndian Apital Arket: 25-1 Excel Books Business Environment Suresh Bedi
Ndian Apital Arket: 25-1 Excel Books Business Environment Suresh Bedi
Chapter
25
25-1
Business Environment
Suresh Bedi
Excel Books
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Business Environment
Suresh Bedi
Excel Books
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Business Environment
Suresh Bedi
Excel Books
Major Intermediaries Merchant banks provide a range of specialised financial services to their client companies like:
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Pre-investment studies for companies planning new projects; Developing and assisting comprehensive package for project funding; Determining the composition of the securities to be issued and arranging of securities; Drafting of issue prospectus. listing
Arranging underwriting services and loan syndication including foreign currency finance; Placing of issues; Selection of brokers, bankers to the issue, advertising agencies etc.; and Appointment of registrars to deal with share application and transfers.
Business Environment Suresh Bedi
Contd Copyright 2004, Suresh Bedi
Excel Books
Underwriters Underwriters are appointed on the basis of their financial strength and ability to meet obligation by the issuing companies on the advice of their merchant bankers or lead managers.
Bankers to the Issue The basic function of the bankers to the issue is to accept applications from the investors for the issue of securities and to refund the same if the need arises.
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Business Environment
Suresh Bedi
Excel Books
Brokers to the Issue are involved in the distribution process for securities. They intermediate between the issuing company and are prospective investors and engaged in procurement of subscription to securities issued from the latter.
Registrars and Share Transfer Agents Registrars to an issue deal with the procedural matters relating to the issue. Portfolio Managers These intermediaries manage the portfolio of securities on behalf of the clients and provide various portfolio management services.
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Business Environment
Suresh Bedi
Excel Books
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Business Environment
Suresh Bedi
Excel Books
4.
Rights Issue Rights issue is the offer of new shares to existing share-holders, generally in a particular proportion to the existing share holding.
5.
Book Building Method In this method, the lead manager to a new issue estimates market demand for the securities and accordingly sets the offer price.
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Business Environment
Suresh Bedi
Excel Books
already issued, and functions principally through various stock exchanges of the country. Its main role is to provide liquidity to the securities. Stockbrokers and Sub-brokers A stockbroker is a member of a stock exchange who buys or sells securities on his own account or for non-member clients in return for a commission on the price of the securities traded.
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Business Environment
Suresh Bedi
Excel Books
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Business Environment
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Excel Books
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Business Environment
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Excel Books
Bad Deliveries Bad delivery refers to a situation when the shares sent by buyers in physical form are rejected by the companies for registration. Basket Trading System In this system, the investors are allowed to buy or sell all 30 scripts of Sensex in one go in the proportion of their respective weights in the Sensex.
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Business Environment
Suresh Bedi
Excel Books