Floatation of a Company
Floatation or capital subscription involves the following steps:
Consent of SEBI: The proposed issue of shares is approved by the Securities and Exchange Guard of India. For this purpose, the company sends a copy of the prospectus to SBI for vetting.
Filing of Prospectus: The prospectus is filed with the Registrar of Companies. A company noticing a prospectus has to file a ’statement-in-lieu of prospectuses with the Registrar of Companies.
Receipt of Applications: The company issues application forms and copies of the prospectus to intending investors through its rockers, underwriters and bankers, Then filled in application along with money are received by the company’s bankers.
Application for Listing: The Company also makes application tone or more stock exchanges for listing of the proposed issue for the purpose of trading.
Minimum Subscription: The amount of minimum subscription is specified in the prospectus. It is the minimum amount of capital which must be raids before allotment of shares is done. It is mint for purchase of fixed ashes, working capital initial expenses of the issue of shires. The Co pan must receive a minimum subscription of 90 per cent of the public offer within 60 days the closure of the issue.
Allotment of Shares: Applications are scrutinize and shares are allotted to the successful applicants. Money received with applications is refunded to the unsuccessful applicants.