Understanding Primary Markets
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What is Primary Market?
Smaller businesses can be run on small capital. As a business grows, the need for funds may also grow. It may not always be possible for the promoters of the business to invest their own money. In such situations, money...
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Who can bring out a public issue?
Investors put their money and the trust in the issuer companies. For protection of investors' trust and money, SEBI has put in place guidelines for who can raise money in primary market. These guidelines are part of 'DIP Guidelines 2000'...
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Pricing and the other issues
1. How are the issues priced? Today, there are two ways of pricing of issues Fixed price issue - here the price of the security is decided by the issuer in consultation with the merchant banker before opening of the...
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Primary markets and grading of issues
IPO grading is the grade assigned by a Credit Rating Agency registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be converted into or exchanged with equity shares at a later...
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Primary market and investor
1. Process of applying for an IPO Investor need to have a demat account. Maximum three individuals can apply jointly in a public issue. Demat account need to be in the name of all applicants. Retail investor can invest up...
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