Basically, issues made by an Indian company can be classified as follows: 1. Public Issue 2. Private Placement 3. Rights Issue 4. Bonus Issue 5. Employees Stock Option Plan (ESOP). Method # 1. Public Issue: A public issue is an issue where anybody and everybody can subscribe for the securities. When an issue or offer of securities is made to [...]
The important intermediaries/players in the new issue market are: 1. Merchant Bankers (Managers to the Issue) 2. Underwriters 3. Registrars to the Issue 4. Brokers to the Issue 5. Banker to the Issue 6. Syndicate Members. 1. Merchant Bankers (Managers to the Issue): SEBI regulations 1992 prescribes that all public issues should be managed by at least one merchant banker [...]
Benchmark rates are rates or the prices of instruments that are traded in the market which are used for pricing of other instruments. These rates or prices are used as benchmark for floating rate instruments. In the fixed income market, it is an interest rate that the market respects and closely watches. Typically a benchmark rate should satisfy the following [...]