ISSUE OF SHARES. — SPCC STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceSPCCISSUE OF SHARES.3 Marks
Question
How is the classification of share application done?
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Answer
After receipt of share requests, the roll is prepared and applications with incomplete details are rejected. 1. Retail Investors2. Investors holding non-institutional high net worth
3. Institutional Investors
4. Applicants from the company's employees are classified as applications in four types of applicants.
According to SEBI guidelines, retail investors are required to keep at least 10% share of the total shares issued.
Generally the company refers to the amount of share allocation for each type of applicant in its advertisement sheet.
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