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

Which statement correctly describes the regulatory role of SEBI in a public issue of equity shares by a listed or to-be-listed company?

SEBI regulates the public issue process and the disclosures in the offer document to protect investors, but it does not guarantee the issue's success, price or merits. Allotment is carried out by the issuer with the registrar and stock exchange.

  1. ASEBI guarantees the success and pricing of the issue
  2. BSEBI regulates the issue process and disclosures to protect investors, and does not vouch for the merits of the issueCorrect
  3. CSEBI acts as the underwriter of last resort
  4. DSEBI performs the allotment of shares to applicants

Explanation

SEBI lays down disclosure and procedural norms and reviews offer documents for investor protection, but it does not guarantee pricing, success, or approve merits. Allotment is done by the issuer with the registrar and stock exchange, and SEBI is not an underwriter.

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