NEW ISSUE MARKET/ Primary Market

To To To To To

promote new company expand the existing company diversify production meet regular working capital investment capitalize the reserve

The primary market provides a direct link between the prospective investors and the company. Stocks available for the first time are offered through new issue market. The issuer may be a new company or an existing company. They take the responsibility of selling the stocks to the public.

Organizing Underwriting Distribution

Organizing deals with the proposal of the new issue. The proposal is analyzed in terms of the nature of the security, the size of the issue and flotation method of the issue. Underwriting contract makes the share predicable and removes the element of uncertainty in the subscription. Distribution refers to the sale of the securities to the investors.

Managers/lead managers: Eg are Comercial banks,foreign banks,private sector banks .SBI capital market ltd,DSP financial consultants,canara bank etc. There duties are

Drafting of prospectus preparing the budget suggesting the timing of the issue assisting in the marketing they assist in appointing and directing the resistar,undewriters,brokers,bankers & advertising agents

Registrar to the issue: they receive the share application from various collection centers. They recommend the basis of allotment in consultation with the regional stock exchange for the approval. They arrange for the dispatching of the share certificates. They maintain the issuer records. Underwriters: They provides an insurance against the possibility of inadequate subscription..there are two categories financial institution and brokers.They undertake the agreed non subscribed portion of the public issue. some of them are commercial banks merchant banks etc

Banker to the issue: They have the responsibility of collecting the application money along with the form. Depending on the size of the issue there can be more than one banker. The number of collection center are specified by the govt.To create the investment awareness in the minds of the people collecting branches are designated in many places. Advertising agent:The suitable advertising agency is selected in consultaton with the lead managers to the issue.It takes the responsibility of giving publicity to the issue on the suiatable media.

Financial institutions: they generally underwrite the issue and lend long term loans to the companies. They go through the prospectus, study the proposed programme for public issue and approve them.UTI,IDBI,LIC,ICICI etc Government & statutory agencies: The various regulatory bodies related to the public issue are SEBI, registrar of the companies, RBI(if project involves foreign investment),stock exchanges, Industrial licensing authorities & pollution control authorities(clearance of the project has to be stated in the prospectus)

Collection centers: Generally 30 mandatory collection centers should be present.

Ludiana SE Delhi SE Jaipur SE U.P SE

Hyderbad SE Bangalore SE Mangalore SE Chennai SE Coimbatore SE Cochin SE

Northern

Southern

Eastern
Culcutta SE Gauhati SE Magadh SE Bhubaneshwar SE

western

Bombay SE National SE OTCEI SE MP SE Pune SE Vadodara SE Ahmedabad SE Saurashtra SE

Through prospectus Bought out deals Private placements Right issues and Book building

At premium At par

Promoters credibility Effiency of management Project details Product Financial data Risk factors Auditors report