Monthly archive: March, 2009
How do get online accounts for internal reparation projects?
Mitsuko asks:
We want to build a number of futuristic businesses in the perverbial hood acroos the country. We are raising funds for an array of “development accounts” from proceeds from our online and entertainment businesses, community organized Limited Partner (LP) investments, and corporate/private donations. Once raised, each fund is then invested into small entrepreneurial projects focused on up to five organically built companies from which a large multiple is expected to be returned through an Initial Public Offering (IPO) or an acqusition by working with larger established companies online. Once an entire fund is returned, the fund is then distributed back to the LP’s at the same rate at which they invested and the cycle of payback in the hood takes on a new meaning. We want to do this in the cities where we have devices and people on our entertainment network.
We want to build a number of futuristic businesses in the perverbial hood acroos the country. We are raising funds for an array of “development accounts” from proceeds from our online and entertainment businesses, community organized Limited Partner (LP) investments, and corporate/private donations. Once raised, each fund is then invested into small entrepreneurial projects focused on up to five organically built companies from which a large multiple is expected to be returned through an Initial Public Offering (IPO) or an acqusition by working with larger established companies online. Once an entire fund is returned, the fund is then distributed back to the LP’s at the same rate at which they invested and the cycle of payback in the hood takes on a new meaning. We want to do this in the cities where we have devices and people on our entertainment network.
DLF IPO :how to pay the remaining amount online?
Lissette asks:
I had applied for 150 shares for DLF IPO through ICICI direct account choosing part payment option.
I had applied for 150 shares for DLF IPO through ICICI direct account choosing part payment option.
Now due to undersubscription 150 shares will be alloted to me. I have querry and remaining amount to be paid as I am out of station.
1. Can I pay this amount online thro ICICI direct?
2. If not can I use the cheque of my friend?
3.Do I need to submitt any document along with cheque (demand note). As told earlier i wont be able to collect any document on my address as I am out of station.
Regulation for Withdrawal of Applications by Retailers and Hni in an Ipo
Ollie asks:
Lot of pressure was put on the share brokers and investors with 20 per cent fall in market value as a result sharp decline in the last three days. As a result of the squeeze investors were hard pressed for cash. They got some relief with Finance Minister and RBI assuring them that all legitimate requirements will be met. Some of the investors also rushed to cash in huge amounts invested in recently issued IPOs including Reliance Power. Under rules the investors are allowed to with their investment till the stock is listed. This had been the case in some earlier issues also like Deccan Air and Cairn Energy.
In an IPO, companies invite applications for shares sought to be enlisted by them in a Stock Exchange. The subscription in an IPO can either through book-built process by inviting bids from the prospective investors or on a fixed price basis. Issue of securities in an IPO is, inter alia, governed by SEBI (Disclosures and Investors Protection) Guidelines, 2002 - popularly known as SEBI DIP Guidelines.
SEBI DIP Guideline at Para no 11A.7.7 also provides that an applicant can withdraw applications in a public issue. Thus, in a book-built issue the applicants can withdraw their applications anytime before allotment of shares / securities by the company. This is emanating from the fundamental principle under Law of Contracts that an offer can be revoked before acceptance. The bids made by the bidders (applicants) is an offer made and allotment of securities by the companies only brings into a binding contract between the bidder and the company and, therefore, an application in a public issue can be withdrawn by the applicant depending upon the market scenario post subscription/closure of the IPO but before allotment even if the application money has been realized by the company. However, as per Clause 11.3.4.1 of the SEBI DIP Guidelines, only Qualified Institutional Bidders (QIBs) are not allowed to withdraw their bid after the closure of the bid. This is to prevent any possible manipulation of the IPO subscription by the QIBs.
Instances have happened in our country where investors have withdrawn their applications in an IPO. IPO made by Purvankara Projects, Deccan Airlines, Cairn Energy, Housing Development Infrastructure Limited, IVR Prime, KPR Mills, have seen withdrawal of applications by retailers and HNI categories before allotment.
Lot of pressure was put on the share brokers and investors with 20 per cent fall in market value as a result sharp decline in the last three days. As a result of the squeeze investors were hard pressed for cash. They got some relief with Finance Minister and RBI assuring them that all legitimate requirements will be met. Some of the investors also rushed to cash in huge amounts invested in recently issued IPOs including Reliance Power. Under rules the investors are allowed to with their investment till the stock is listed. This had been the case in some earlier issues also like Deccan Air and Cairn Energy.
In an IPO, companies invite applications for shares sought to be enlisted by them in a Stock Exchange. The subscription in an IPO can either through book-built process by inviting bids from the prospective investors or on a fixed price basis. Issue of securities in an IPO is, inter alia, governed by SEBI (Disclosures and Investors Protection) Guidelines, 2002 - popularly known as SEBI DIP Guidelines.
SEBI DIP Guideline at Para no 11A.7.7 also provides that an applicant can withdraw applications in a public issue. Thus, in a book-built issue the applicants can withdraw their applications anytime before allotment of shares / securities by the company. This is emanating from the fundamental principle under Law of Contracts that an offer can be revoked before acceptance. The bids made by the bidders (applicants) is an offer made and allotment of securities by the companies only brings into a binding contract between the bidder and the company and, therefore, an application in a public issue can be withdrawn by the applicant depending upon the market scenario post subscription/closure of the IPO but before allotment even if the application money has been realized by the company. However, as per Clause 11.3.4.1 of the SEBI DIP Guidelines, only Qualified Institutional Bidders (QIBs) are not allowed to withdraw their bid after the closure of the bid. This is to prevent any possible manipulation of the IPO subscription by the QIBs.
Instances have happened in our country where investors have withdrawn their applications in an IPO. IPO made by Purvankara Projects, Deccan Airlines, Cairn Energy, Housing Development Infrastructure Limited, IVR Prime, KPR Mills, have seen withdrawal of applications by retailers and HNI categories before allotment.
