26-Sep-2022 09:59 PM
In funding chapter 1 In case of book building issue lead manager becomes underwriter. Then in fixed price issue it is said to appoint underwriter through sebi regulations. Can lead manager become underwriter in fixed price issue also?
As per amendment in regulation 40 of SEBI (ICDR)2018 If the issuer making an initial public offer, other than through the book building process, desires to have the issue underwritten, it shall appoint merchant bankers or stock brokers, registered with the Board, to act as underwriters. So, it is not compulsory to appoint underwriter in fixed price issue. lead manager can become underwriter in fixed price issue as it is not prohibited.
Answer given by Shubhamm Sir at 28-Sep-2022 05:19 PM