Post issue monitoring reports

The post issue lead merchant banker shall ensure the submission of the post
issue monitoring reports
Due diligence certifcate to be submitted with the fnal post issue monitoring
report. The post issue lead merchant banker shall fle a due diligence certifcate in
the format specifed along with the fnal post issue monitoring report
Redressal of the investor grievances
The post-issue lead merchant banker shall actively associate himself with post-
issue activities namely allotment, refund and despatch and shall regularly monitor
redressal of investor.
oordination with the intermediaries
The post-issue lead merchant banker shall maintain close coordination with the
Registrars to the !ssue. "ny act of omission or commission on the part of
intermediaries shall be reported to the #oard
$nderwriters
The lead merchant banker shall satisfy himself that the issue is fully
subscribed before announcing closure of the issue
The lead merchant banker shall ensure that the underwriters honour their
commitment within %& days from the date of closure of the issue.
The lead merchant banker shall furnish information in respect of underwriters
who failed to meet their underwriting devolvement's
#ank to issue
The post-issue lead merchant banker shall ensure that moneys
received pursuant to the issue are kept in a separate bank (i.e
Bankers to issue )as per the provisions of section 73(3) of the
companies act, 1!".
#ost issue advertisements
#ost- issue lead merchant banker shall ensure that in all issues,
advertisement $ivin$ details relatin$ to oversubscription, basis on
allotment, number, value and percenta$e of application received etc.
is released %ithin 1& days.
#asis of allotement
'n a public issue of securities , the mana$in$ director alon$ %ith
the lead merchant banker and the re$istrar to an issue, shall ensure
that basis of allotments is (nalised in a fair and proper manner
#roportionate-allotment #rocedure
)n allotment shall be made on a proportionate basis %ithin the
speci(ed cate$ories . The proportionate allotments of securities in
an issue, that is oversubscribed shall be sub*ect to reservation for
the retail individual investors as described in the follo%in$+
1. ) minimum !&, of the net o-er of securities to the public shall
initially be made available for the allotment to retail individual
investors as the case may be.
.. The balance net o-er of securities to the public shall be made
available for allotment to+
a) individual applicants other than retail individual investors
b) other investors includin$ corporate bodies/ institutions ,
irrespective of the number of shares, debentures and so on , applied
for
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Post Issue activities and Right issues
by Sree Rama Rao on October 10, 2008
1. Collect figures of applications money from the controlling branches and as far as possible
from other key branches, and send one day report to the S!". "f the issue is subscribed obtain
the certificates from the registrars for #0 per cent$100 percent %as the case may be& subscription
and send the copy of the same to the S!" and the regional stock e'change.
2. (rite to the related stock e'change regarding closure of subscription list and ad)ertisements
declaring issue to be closed is published.
#. Compliance reports to the S!" are to be sent. *here +ere four different types of reports in
case of subscribed public issues %,, -., ,0 and /0 days reports& and si' reports in case of
unsubscribed public issues %,, #0, -., 00, /0 and 100 days reports&. (ith effect from 1uly 1//.,
only t+o post2issue reports for public issue are to be submitted %# and ,8 days post2issue
monitoring reports& %3nne'ures 10 %a& and 10%b&&. *he merchant bankers ha)e to keep the S!"
informed on important de)elopments about the particular issues being lead managed by them
during the inter)ening period of the reports.
-. *he follo+ing are to be submitted the regional stock e'change4
%a& Statement of )alid application
%b& Certificate of /0 percent subscription
%c& !ank certificates
.. Obtain letter from regional stock e'change appro)ing basis of allotment for different
categories.
0. Send copy of the letter of regional stock e'change to other e'changes +here listing permission
is sought.
,. 5ake public a copy of basis of allotment in t+o national dailies
8. 6ublish ad)ertisements mentioning the )arious dates on +hich refunds$ allotments and listing
+ere dispatched and sought respecti)ely.
/. "n case of delay by more than ,8 days the lead manager should see that the interest for the
delayed period is paid by the issuer.
10. Confirm that the listing formalities ha)e been completed +here the listing has been sought
11. 3rrange for permission for dealing in securities
12. Confirm that )arious commissions$brokerage$payments to )arious intermediaries ranged by
the merchant banker ha)e been paid by the company.
1#. Obtain R!" permission of allotment of shares$debentures to 7R"s and 8""s.
*he lead manager should submit the draft of the letter of offer to the S!" si' +eeks before the
issue is scheduled to open for subscription. *he suggestion, if any +ould be con)eyed +ithin
three +eeks from the date of receipt of such draft, should be incorporated $complied +ith by the
merchant bankers before fling a copy of the letter of offer. 3 copy of the letter of offer should be
submitted by the merchant bankers to the S!" t+o +eeks before the issue opens for
subscriptions. *he merchant banker should submit along +ith the letter of offer a due diligence
certificate to the S!" in the form, already prescribed by the S!". *he merchant banker
submitting he letter of offer is responsible for ensuring compliance +ith he S!" rules,
regulation and guidelines and re9uirements of other la+s , +hich are for the time being, in force.
Rest of the reports and regulations are to be complied +ith by the merchant bankers as already
specified. *he changes being made are only in respect of submission of letter of offer and the rest
remains the same.