question_answer 24)

What are the regulations of SEBI that the company must comply with?

Answer:

Following are the regulations of the SEBI for new Issue that the company must comply with (i) Prospectus has to be attached with every application. (ii) Objective of the issue and cost of project should be mentioned in the prospectus. (iii) Company's management, past history and present business of the firm should be highlighted in the prospectus. (iv) Subscription list for public issue should be kept open for a minimum of 3 days and maximum of 10 days. (v) Collections agents are not allowed to collect application money in cash. (vi) Issue should make adequate disclosure regarding the terms and conditions of redemption, security conversion and other relevant features of the new instrument so that an investor can make reasonable determination of risks, returns, safety and liquidity of the instrument. The disclore shall be vetted by SEBI in this regard.