Question

What are the various routes through which securities are issued in the Equity and Debt markets? Discuss the various issues that are required to be taken care of while regulating the Public Issue of Securities. 

29 Jul 2023
Answer :
Word Count : 617

Securities can be issued in the equity and debt markets through various routes, which are regulated by the Securities and Exchange Board of India (SEBI). The main routes through which securities are issued are:

Equity markets:

  1. Initial Public Offering (IPO): An IPO is the first sale of securities by a company to the public. It involves the issue of new shares by the company, which are sold to investors through a public offering. The purpose of an IPO is to raise capital for the company and provide an exit route for existing shareholders.

  2. Follow-on Public Offering (FPO): A FPO is a public offering of additional shares by a company that is already listed on the stock exchange. The purpose of a FPO is to raise additional capital for the company.

  3. Rights issue: A rights issue is an offer of additional shares to existing shareholders of a company. The _____ _______ __________ _______ ______ ________ ___.
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