VYSAKH K B

2010-31-101

The management of securities of the corporate sector offered to the

public on a regular basis, and existing share holders on a right basis ,is known as public issue management

Issue management is an important function of merchant bankers and

lead managers. Tremendous growth in the number and size of public listed companies and complexity arising due to ever increasing SEBI requirements have all attributed to the significant role played by merchant bankers in the recent past.

In a fast growing economy like India there is significant role for issue

management.

Obtaining approval for the issue from SEBI Arranging for underwriting the proposed issue. Preparation of draft and finalization of the prospectus and obtaining its clearance from various agencies concerned.

Preparation of draft and finalization of other documents such as application forms, news paper advertisements and other statutory requirements

Making a choice regarding registrar to the issue, printing press, advertising

agencies , brokers and bankers to the issue and finalization of the fees paid to them

Arranging for press conferences and investors conferences.

Coordinating printing , publicity and other work in order to get everything ready at the time of public issue.

DECISION TO RAISE CAPITAL FUNDS OBTAINING SEBI APPROVAL ARRANGING UNDERWRITING PREPARATION AND FINALISATION OF PROSPECTUS SELECTION OF REGISTRARS,BROKERS,BANKERS,ETC ARRANGING PRESS AND INVESTOR COPNFERENCE PRINTING AND PUBLIC ITY OF PUBLIC ISSUE DOCUMENTS SEBI COMPLIANCE ISSUE LAUNCH

Public issue Right issue Private

Any financial institution /intermediary which can carry out the activities connected with the issue management, registered with SEBI and can follow its regulations and guidelines, is capable of venturing into the issue management
Requirements Adequate and necessary infrastructure such as adequate office space , equipments and manpower to effectively discharge activities. Minimum number of two person is needed, who are professionally

1.

2.

qualified in Law, Finance or Business Management and have

experience to conduct the business of merchant banker
3.

Fulfilling the capital adequacy requirements , ie.minimum net worth

of Rs.5 crores

Easy floatation
Financial consultant Underwriting Market makers Due diligence

Co-ordination
Liaison with SEBI

Signing of MoU Obtaining appraisal note Optimum capital structure Convening meeting Appointment of financial intermediary Preparing documents Due diligence certificate Submission of offer document Finalization of collection centres Filing with RoC Launching the issue Promoters contribution Issue closure

THANK YOU