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Accountancy

How they allot debentures for underwritters(red mark in image) Even though in question doesn't mention about this...

Balaji R

CA Final

★ 20K+

26-Aug-21 14:04

344

Answers (6)

Best Answer

It's because underwriter agrees to underwrite whole of the securities issued by the company. So any securities which is offered to public which are left unsubscribed by them it's the underwriter who has to fulfill his commitment to purchase those securities and in return he get his commission for taking that risk

Himanshu Somani

CA Final

★ 77K+

26-Aug-21 15:38

In question they mentioned about understanding commission. By that we can assume

SAIRAM SANKITI

CA Final

★ 10K+

26-Aug-21 15:33

When we publicly issue debentures we issue left debentures to underwriters that is Issued - Subscribed so basically any shortfall is given to underwriters

roshini reddy

CA Inter

★ 1K+

26-Aug-21 15:38

Concept of underwriting for further understanding is added in your courses please check

roshini reddy

CA Inter

★ 1K+

26-Aug-21 15:51

roshini reddy

Concept of underwriting for further understanding is added in your courses please check

In which chapter mam Please mention location of lectures

Thread Starter

Balaji R

CA Final

★ 20K+

26-Aug-21 16:12

Thread Starter

Balaji R

In which chapter mam Please mention location of lectures

Sry got it mam Thank you

Thread Starter

Balaji R

CA Final

★ 20K+

26-Aug-21 16:13

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