In a Green Shoe Option, the company can allot additional shares not exceeding 15% of the issue size to the general public who have subscribed in the issue.

The money realised out of this over-allotment will be used by the Stabilizing Agent for buying shares from the secondary market whenever the market price goes below the issue price.

The Stabilizing Agent can only buy shares and cannot sell any shares and the entire process of stabilization will be available only for a period of 30 days from the date on which the shares are listed and traded.

In the depository, the dematerialised securities are identified in terms of the ISIN

(International Securities Identification Number)

A bond in which regular payments that are made by the borrower includes both interest and principal, is called an amortising bond.

Auto loan and home loans are examples of amortising bonds.

The ISIN is a unique 12 digit number allotted to each security in conformity with the ISIN Standard.

The first two digits identify the country. For example, for India it is IN. The next 9 alpha-numeric characters are the basic numbers that identify the company and the specific security of the company. The last digit is the check digit.

Trades done one-on-one and settled outside the clearing and settlement mechanism

of a stock exchange are called off-market trades.

Here the amount is paid to the seller directly by the buyer as per the terms and conditions of the trade. 

Dividend is always declared on facevalue. 

Face value = Rs 10

Dividend declared = 40%

So dividend = Rs 4  per share ( 40 x 10  / 100 )

300 shares x Rs 4  =  Rs 1200

Public issue will be open for a minimum of 3 working days and a maximum of 7 days.

If the price band is revised, then the issue will be open for a maximum of 10 working days.

When a shareholder informs R&T agent of the loss of share certificates, the R&T Agent will give effect to the Stop Transfer request is accompanied by an FIR, acknowledged copy of police complaint or restraining order from the court.

If these documents are not submitted within 30 days from the date of notice of loss to the R&T agent, the direction to ‘stop transfer’ will be removed.

Fund Recurring Expenses are usually represented as a percentage of AUM. These expenses are charged to the AUM of the fund on a daily accrual basis.