Regulation 198 - Underwriting - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

Underwriting 198. (1) If the issuer making an initial public offer of IDRs, other than through the book building process, desires to have the issue underwritten, 1 [ it shall appoint merchant bankers or stock brokers, registered with the Board, to act as underwriters ] . (2) If the issuer makes a public issue through the book building process, a) The issue shall be underwritten by lead manager(s) and syndicate member(s): b) The issuer shall, prior to filing the prospectus, enter into underwriting agreement with the lead manager(s), and syndicate member(s), indicating therein the number of specified securities which they shall subscribe to at the predetermined price in the event of under-subscription in the issue. c) If the syndicate member(s) fail to fulfil their underwriting obligations, the lead manager(s) shall fulfil such underwriting obligations. d) The lead manager(s) and the syndicate member(s) shall not subscribe to the issue in any manner except for fulfilling their underwriting obligations. e) In case of every underwritten issue, the lead manager(s) shall undertake minimum underwriting obligations as specified in the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 . f) where the issue is required to be underwritten, the underwriting obligations should at least to the extent of minimum subscription. ************ NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 before it was read as, it shall appoint underwriters in accordance with the Securities and Exchange Board of India (Underwriters) Regulations, 1993