Is minimum subscripttion applicable for debenture issue as well? What is the role or importance of underwriters here?
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Underwriters for debentures?
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Yes, Minimum Subscripttion is applicable for debenture issue as well. As per SEBI guidelines, 2000, no company is allowed to make allotment of Shares or Debentures unless it has received atleast a minimum of 90% of the subscripttion against the entire issue.
The Underwriter gives an assurance/Commitment to take shares or debentures in case of a shortfall in minimum Subscripttion. For more details refer Sec 76 of The Companies Act, 1956.
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