Regulation 260 - Underwriting - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

Underwriting 260. (1) The initial public offer shall be underwritten for hundred per cent of the offer and shall not be restricted upto the minimum subscription level. (2) The lead manager(s) shall underwrite at least fifteen per cent. of the issue size on their own account(s). (3) The issuer, in consultation with lead manager(s), 1 [ shall appoint merchant bankers or stock brokers, registered with the Board, to act as underwriters, ] and the lead manager(s) may enter into an agreement with the nominated investors indicating therein the number of specified securities which they agree to subscribe at the issue price in case of under-subscription. (4) The lead manager(s) shall file an undertaking to the Board that the issue has been hundred per cent. underwritten along with the list of underwriters, nominated investors and sub-underwriters indicating the extent of underwriting or subscription commitment made by each of them, one day before the opening of issue. (5) If any of the underwriters fail to fulfill their underwriting obligations or the nominated investors fail to subscribe to the unsubscribed portion, the lead manager(s) shall fulfill the underwriting obligations. (6) The underwriters/ sub-underwriters, other than the lead manager(s) and the nominated investors, who have entered into an agreement for subscribing to the issue in case of under-subscription, shall not subscribe to the issue made under this Chapter in any manner except for fulfilling their obligations under their respective agreements with the lead manager(s) in this regard. (7) All underwriting and subscription arrangements made by the lead manager(s) shall be disclosed in the offer document. ************ NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 before it was read as, may appoint underwriters in accordance with Securities and Exchange Board of India (Underwriters) Regulations, 1993