CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising
In a public issue of equity shares by an Indian company, which intermediary is primarily responsible for managing the issue, carrying out due diligence and filing the offer document with SEBI?
The lead manager, a SEBI-registered merchant banker, manages a public issue, performs due diligence and files the offer document with SEBI. Registrars, bankers to the issue and debenture trustees perform supporting roles such as allotment records, fund collection and debenture holder protection rather than overall issue management.
- ARegistrar to the issue
- BLead manager (merchant banker)Correct
- CBanker to the issue
- DDebenture trustee
Explanation
The lead manager is a SEBI-registered merchant banker who manages the issue, conducts due diligence and submits the offer document to SEBI. The registrar handles share applications and allotment records, and the banker to the issue collects application money. The debenture trustee only serves debt issues and protects debenture holders.
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