firm underwriting

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Anubhuti Bhawsar (Querist)
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01 October 2009 A company made a public issue of 1,25,000 equity shares of Rs. 100 each, Rs. 50 payable on application.The entire issue was underwritten by 4 parties - A,B,C and D in the proportion of 30%, 25%, 25% and 20% respectively. Under the terms agreed upon, a commission of 2% was payable on the amounts underwritten. A,B,C and D had also agreed on 'firm' underwriting of :
A : 4,000 shares
B : 6,000 shares
C : nil
D : 15,000 shares.
the total subscriptions, excluding firm underwriting, including marked applications were for 90,000 shares.
Marked Applications received were as under:
A : 24,000
B : 20,000
C : 12,000
D : 24,000
Ascertain the liability of the individual underwriter if:
1. firm underwriting is treated as marked applications,

2. firm underwriting is treated at par with unmarked applications and its benefit is given to all the underwriters in the ratio of amount underwritten.