Finance:Devolvement
From HandWiki
In the investment banking sector, particularly in India , devolvement is a process whereby if an investment issue is undersubscribed, an underwriter is required to subscribe to the remaining shares. The outstanding unsubscribed amount devolves onto the underwriter.[1] This is also known as hard underwriting.[2] The Securities and Exchange Board of India publishes guidelines and a recommended method of computation relating to the extent of the devolvement onto a particular underwriter in the case where there are multiple underwriters, or sub-underwriters.[1]
Notes
- ↑ 1.0 1.1 Subramanyam 2008, p. 9–4.
- ↑ CompetitionCommission 1999, p. 58.
References
- Subramanyam, Pratap G (2008). "Underwriting". Investment Banking: Concepts, Analyses, and Cases. Tata McGraw-Hill Education. ISBN 978-0-07-065690-1. https://archive.org/details/schoolsintransit0000tyek.
- "3. The share-issuing process", Underwriting services for share offers: A report on the Supply in the UK of underwriting services for share offers, Competition Commission, 1999, http://www.competition-commission.org.uk./rep_pub/reports/1999/fulltext/424c3.pdf
Further reading
- "Frequently Asked Questions on Primary Market Issuances". Securities and Exchange Board of India. http://investor.sebi.gov.in./faq/pubissuefaq.pdf.
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