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

Sunrise Textiles Ltd is making an IPO. Which function is performed by the Registrar to the issue?

The Registrar to the issue processes applications, finalises the basis of allotment in consultation with the stock exchange, and handles refunds and credit of shares to investors' demat accounts. Underwriting and collecting money are handled by other intermediaries.

  1. AUnderwriting the unsubscribed portion of the issue
  2. BCollecting application money in escrow accounts
  3. CProcessing applications, finalising the basis of allotment and handling refunds and credit of sharesCorrect
  4. DPreparing the valuation of the company's business

Explanation

The registrar to the issue processes applications, helps finalise the basis of allotment with the stock exchange, issues refunds and arranges credit of shares to demat accounts. Underwriting is done by underwriters and collection of money by bankers to the issue.

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