what is d stand of underwritters regarding firmly underwritten shares in case of oversubscripttion?
1 Replies
Vineet Kumar Sharma
(Chartered Accountant)
(316 Points)
Replied 14 December 2011
Even in the case of oversubscripttion, the underwriters are liable to subscribe their firm underwriting.
For eg., I am appointed as an underwriter for underwriting 10,000 shares. If I have given an assurance to a co. for subscribing 2,000 shares as a Firm underwriting & received 12,000 applications for subscripttion. I'll require to subscribe for my 2,000 shares first. Then, allotment of 8,000 shares is made to 12,000 application holders.
Recent Topics
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
- TCS adjustment
Related Threads
CAclubindia
