Understanding SEBI Regulations for Underwriting of Shares: A Simple...

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2024-10-25 07:31:48 - Translate -

Understanding SEBI Regulations for Underwriting of Shares: A Simple Guide

When a company issues new shares to the public, there's always a chance that some shares may not get sold. Underwriting helps reduce this risk. In simple terms, underwriting means that an entity (usually a bank or financial institution) promises to buy the shares that remain unsold during a public offering. This ensures that the company raising funds doesn’t miss out, even if the public...

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