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CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising

In a public issue of equity shares, which intermediary is primarily responsible for collecting application money from investors and remitting it to the issuer's public issue account, and is registered with SEBI for this purpose?

The Banker to an Issue is the SEBI-registered scheduled bank that accepts and collects application money from investors and transfers it to the issuer's issue account, also handling refunds. The Registrar maintains applicant records and allotment data, and the Debenture Trustee protects debenture holders, so neither performs this collection role.

  1. ABanker to an IssueCorrect
  2. BRegistrar to an Issue
  3. CDebenture Trustee
  4. DSyndicate Member only

Explanation

A Banker to an Issue is a SEBI-registered scheduled bank that accepts application money, collects it and transfers it to the issue account and handles refunds as required. A Registrar handles allotment records and share transfer data, not collection of funds. A Debenture Trustee protects debenture holders' interests.

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