capital_market22__38

May 19th, 2015
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INTRODUCTION The primary market is a market for new issues. It is also called the new issues market. It is a market for fresh capital. Funds are mobilised in the primary market through public issue, rights issues, and private placement. Prospectus shall be issued when securities are offered to the public and prospectus shall comply with all the provisions of the act as well as the SEBI guidelines applicable to such public offerings. The direct sale of securities by a company to some selected people to institution is termed as private placement and there is no need to issue prospectus

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Capital MarketINTRODUCTIONThe primary market is a market for new issues. It is also called the new issues market. It is a market for fresh capital. Funds are mobilised in the primary market through public issue, rights issues, and private placement.Prospectus shall be issued when securities are offered to the public and prospectus shall comply with all the provisions of the act as well as the SEBI guidelines applicable to such public offerings. The direct sale of securities by a company to some selected people to institution is termed as private placement and there is no need to issue prospectus Intermediaries to an IssueThere are different intermediaries to an issue such as merchant bankers or book running lead managers BRLM), syndicate members, registrars to the issue, bankers to the issue, auditors of the company and solicitors. The issuer discloses the addresses, telephone, fax numbers and email addresses of these intermediaries.Merchant Banker: A merchant banker should be registered with the SEBI as per the SEBI (Merchant Bankers) Regulations, 1992 to act as a book running lead manager (BRLM) to an issue. The lead merchant banker performs most of the pre-issue and post-issue activities. The pre-issue activities of the lead manager include due diligence of company's operations/ management/business plans/legal etc., drafting and designing offer document, finalizing the prospectus, drawing up marketing strategies for the issue, and ensuring compliance with stipulated

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