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UNDERWRITING

(CHAPTER 6 )

UNDERWRITING IN INDIA

Contingent Obligation Underwriting Agreement and Commission SEBI (Underwriters) Rules 1993 Devolvement and arriving at devolvement liability Optional in fixed price offers and rights issues. In book built offers under normal eligibility conditions, the NPO has to be underwritten compulsorily. In book built offers under alternative eligibility conditions, the portion compulsorily to be offered to QIBs (75%) cannot be underwritten. The rest has to be mandatorily underwritten.

UNDERWRITING IN USA

Firm underwriting and best efforts underwriting. Underwriting is a purchase contract in a firm underwriting model. Underwriters risks in firm underwriting waiting risk, pricing risk and marketing risk and measures to mitigate them. Underwriting Spread Lead Underwriters fee Selling Commission Underwriting agreement Agreement among underwriters Dealer agreement

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