What are the regulations of SEBI that the company must comply with?
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.
What relationship do you see between the movement of indices in world markets and NSE indices?
Give details of all the indices mentioned above, you can find information on the web or business magazines.
What factors affect the movement of stock indices? Elaborate on the nature of these factors.
‘R’ Limited is a real estate company which was formed in 1950. In about 56 years of its existence the company has managed to carve out a niche for itself in this sector. Lately, this sector is witnessing a boom due to the fact, that the Indian economy is on the rise. The incomes of middle class are rising. More people can afford to buy homes for themselves due lo easy availability of loans and accompanying tax concessions.
To expand its business in India and abroad the company is weight various options to raise money through equity offerings in India. Whether to tap equity or debt, market whether to raise money from domestic market or international market or combination of both? When their to raise the necessary finance from money market or capital market. It is also planning to list itself in New York Stock Exchange to raise money through ADR’s. To make its offerings attractive it is planning to offer host of financial plans products to its stakeholders and investors and also expand it’s listing at NSE after complying with the regulations of SEBI.
1. What benefits will the company derive from listing at NSE?