The objective of the book building process is to identify the price that the market is willing to pay for the securities being issued by the Company. The Company and its lead managers specify a price band within which investors can bid. When the issue opens, investors put in bid applications specifying the price and the number of securities bid at that price. The price should be within the price band. The issuer, in consultation with the book running lead manager decides cut-off price which is the price at which the issue gets subscribed
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Commission payable to the stock broker for arranging the sale or purchase of securities. Maximum chargeable commission is fixed by the Exchanges.
Securities issued to existing investors as on a specific cut-off date, enabling them to buy more securities at a specific price.
A system of organisation, which keeps records of securities, deposited by its depositors. The records may be physical or simply electronic records
The procedure for verifying trade details carried out by the clients