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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Equity and Procedural Aspects - Public Funding

In a public issue of equity shares by an Indian company, which of the following intermediaries is primarily responsible for managing the issue process, carrying out due diligence on the offer document and filing it with SEBI?

The merchant banker, acting as book running lead manager, is responsible for managing the public issue, carrying out due diligence on the offer document and filing it with SEBI. Other intermediaries such as the registrar and bankers perform specific supporting functions.

  1. ARegistrar to the issue
  2. BMerchant banker (book running lead manager)Correct
  3. CBanker to the issue
  4. DSyndicate member

Explanation

The merchant banker, acting as book running lead manager, manages the issue, conducts due diligence and files the draft offer document with SEBI. The registrar handles applications and allotment records, the banker to the issue collects application money, and syndicate members procure bids.

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