3. Till recently the general policy regarding issue of
securities was governed by the capital issued
control act -1947 and the rules made there under.
However in continuation of its liberalization
policies the government of India issued on May 29-
1992 an ordinance abolishing the capital issue
control act 1947. The ordinance also supersedes the
difference guidelines issued by the controller of
Capital issued from time to time.
4. First issue of new companies
First issue by existing private held
companies
Public issue by existing listed companies
Underwriting
Composite issue
Fully convertible debentures
5. New financial instruments
Reservation in issue
Deployment of issue proceeds
Minimum interval time between two
issues
Employee stock options scheme
Promoters contribution and lock-in-period
Bonus shares
Guidelines for the protection of the
debenture holders
General
6. No stock broker or sub broker shall
deal in securities unless he holds a
certificate granted by SEBI. However
such a person may continue to deal in
securities if he has made an
application for such registration till
the disposal of such application.
7. The government have been receiving a
large number of complains regarding the
non-receipt of refund of share application
of money allotment latter. In order to
facilitate the investors on the suggestion
made by the SEBI a new instrument
called STOCKINVESTMENT has been
introduced by the government. The details
of the scheme have been prepared by SBI
and approve by the RBI.
8. Under the stock investment scheme the
company while deciding the basis of
allotment would consider along with the
other application, the application received
from the investor who has opted for
payment by the instrument called stock
invest.
9. The term of issue and payment of stock
Invest are being summarized
as below:
It is issued to an applicant who
applying for new issues of shares
Debenture or bonds.
Stock invest is issued in five
denominations of RS.250 ,RS.500
, RS.2500.
10. The denomination is mentioned in the top
of the stock invest from.
Stock invest is neither transferable nor
negotiable.
Stock invest is valid for six months from
the date of its issue mentioned
On its face.
Stock invest is valid for payment only
when signed by the issuing banker at the
Specified space on its face.
