In an e-IPO, the company should appoint a ________ having electronic connectivity with the exchange.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → registrar to the issue
Option (1) registrar to the issue — Correct. The whole issue is handled on-line. So the registrar to the issue, who processes the applications, must be electronically connected with the exchange.
Option (2) lead manager — Incorrect. The lead manager coordinates all the activities among the intermediaries of the issue.
Option (3) depository participant — Incorrect. A depository participant is the link between the investor and the depository. It keeps the investor’s demat account.
Option (4) sub-broker — Incorrect. An investor approaches a registered broker or sub-broker to buy or sell shares on the stock exchange.
NCERT (Pre-rationalised Edition): NCERT (Pre-rationalised Edition): “4. Rights Issue 5. e-IPOs: A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the”
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