Dos and Don'ts - Issue of Securities

Riyaz Khan (CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.)   (1315 Points)

17 December 2009  

 

 

DOS
 
􀀹 Read the Prospectus/ Abridged Prospectus and carefully note:
􀀹 Risk factors pertaining to the issue.
􀀹 Financials of the issuer.
􀀹 Object of the issue.
􀀹 Outstanding litigations and defaults, if any.
􀀹 IPO Grading.
􀀹 Basis of issue price.
􀀹 Business Overview.
􀀹 Background of promoters
􀀹 Instructions before making application.
􀀹 In case of any doubt/problem, contact the compliance officer named in
the offer document.
􀀹 In case you do not receive share certificate or credit to demat account
or refunds of application money, lodge a complaint with compliance
officer of issuer company and post issue lead manager as stated in the
offer document.
 
DON’TS
 
􀀸 Do not fall prey to market rumours.
􀀸 Do not go by any implicit/explicit promise made by any one.
􀀸 Do not invest based on bull run of the market index/scrips of other
companies in same industry/issuer company.
􀀸 Do not bank upon the price of the shares of the issuer company to go
up in the short run.

(Source : www.investor.sebi.gov.in)