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

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Balaji R

Balaji R

CA Final

20K+

26-Aug-21 14:04

292

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

Himanshu Somani

CA Final

68K+

26-Aug-21 15:38

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


SAIRAM SANKITI

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

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

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

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

Balaji R

CA Final

20K+

26-Aug-21 16:13

ibs launch
Direct Tax