Secretarial Practice Attempt the following.

IPO is the first sale of shares by a privately owned company to the general public. A public company can raise capital by making an appeal to the general public to purchase shares of the company by issuing a prospectus.

The process of IPO is as follows:

• Submission of Application: The investor (applicant/BO) has to submit an application for securities to the issuer company.
• Verification with Depository: The details of the investor are verified by the company with Depository.
• Report by Depository: After verification depository submits the investors report to the issuer company
• Details of Allotment: The issuer company submits the details of allotment to the depository for updating their records.
• Crediting the account: The depository credits the account of the beneficial owner with a specific number of securities.
• Intimation to the DP: Depository then informs the Depository Participant (DP) about the details of the beneficial owner account.
• Intimation to the BO: Depository Participant informs the beneficial owner (investor) about his investment through Statement of Accounts.

Dematerialization is the process of converting physical certificates into electronic form/mode. When an investor opts for a depository system, he has to approach a Depository participant, who is the authorized agent of the depository. The investor needs to surrender his share certificate to the company through a depository participants. On confirmation from the company and Depository DP arranges to credit investors account with an equivalent number of shares. Following steps are involved in the process of Dematerialisation: Submission of DRF by Investor: The investor has to submit the DRF (Demat Request Form) in triplicate and original certificates to DP. Entry in the system and forwarding request to Depository: DP enters the details of Demat request in the system and sends it to the Depository. Forwarding Copy to the Issuer: DP sends the physical certificates and copy of DRF to the Issuer i.e. Company Verification by the Issuer: The Issuer (Company) verifies and confirms to Depository about dematerializing of the securities. Updating records by the Depository: Depository records the request in the system and forwards it to the Issuer Company. Intimation to the DP: Depositor credits the dematerialized securities to the beneficiary/investors Demat A/c and informs the DP. Intimation to the investor: A statement of account is issued to the Investor periodically. It contains all the details of the investor.