7.0    The post issue obligations shall be as follows :

7.1 ⁷ [Deleted]

7.2.1 Irrespective of the level of subscription, the post-issue Lead Merchant Banker shall ensure the submission of the post-issue monitoring reports as per formats specified in Schedule XVI.

7.2.2 These reports shall be submitted within 3 working days from the due dates.

7.2.1.1 Public Issues

(a) 3-Day Post Issue Monitoring Report

The due date for this report shall be the 3^rd day from the date of closure of subscription of the issue.

(b) 78-Day Post Issue Monitoring Report

The due date for this report shall be the 78th day from the date of closure of subscription of the issue.

7.2.1.2 Rights Issues

(a) 3-Day Post-Issue Monitoring Report

The due date for this report shall be the 3^rd day from the date of closure of subscription of the issue.

(b) 50-Day Post-Issue Monitoring Report

The due date for this report shall be the 50th day from the date of closure of subscription of the issue.

7.3 Redressal of Investor Grievances

7.3.1 The Post -issue Lead Merchant Banker shall actively associate himself with post-issue activities namely, allotment, refund and despatch and shall regularly monitor redressal of investor grievances arising therefrom.

7.4 Co-ordination with Intermediaries

7.4.1 (i) The Post-issue lead merchant banker shall maintain close co-ordination with the Registrars to the Issue and arrange to depute its officers to the offices of various intermediaries at regular intervals after the closure of the issue to monitor the flow of applications from collecting bank branches, processing of the applications including those accompanied by stockinvest and other matters till the basis of allotment is finalised, despatch security certificates and refund orders completed and securities listed.
(ii) Any act of omission or commission on the part of any of the intermediaries noticed during such visits shall be duly reported to the Board.

7.4.1.1 Stock Invest

The lead merchant banker shall ensure compliance with the instructions issued by the RBI on handling of stock invest by any person including Registrars.

7.4.1.2 Underwriters

1. i) If the issue is proposed to be closed at the earliest closing date, the lead Merchant Banker shall satisfy himself that the issue is fully subscribed before announcing closure of the issue.

b) In case there is a devolvement on underwriters, the lead Merchant Banker shall ensure that the underwriters honour their commitments within 60 days from the date of closure of the issue.

c) In case of undersubscribed issues, the lead merchant banker shall furnish information in respect of underwriters who have failed to meet their underwriting devolvements to the Board in the format specified at Schedule - XVII.

7.4.1.3 Bankers to an issue

The post-issue Lead Merchant Banker shall ensure that moneys received pursuant to the issue and kept in a separate bank (i.e. Bankers to an Issue), as per the provisions of section 73(3) of the Companies Act 1956, is released by the said bank only after the listing permission under the said Section has been obtained from all the stock exchanges where the securities was proposed to be listed as per the offer document.

7.5 Post-issue Advertisements

7.5.1 Post-issue Lead Merchant Banker shall ensure that in all issues, advertisement giving details relating to oversubscription, basis of allotment, number, value and percentage of applications received along with stockinvest, number, value and percentage of successful allottees who have applied through stockinvest, date of completion of despatch of refund orders, date of despatch of certificates and date of filing of listing application is released within 10 days from the date of completion of the various activities at least in an English National Daily with wide circulation, one Hindi National Paper and a Regional language daily circulated at the place where registered office of the issuer company is situated.

7.5.2 Post-issue Lead Merchant Banker shall ensure that issuer company / advisors / brokers or any other agencies connected with the issue do not publish any advertisement stating that issue has been oversubscribed or indicating investors� response to the issue, during the period when the public issue is still open for subscription by the public.

7.5.3 Advertisement stating that "the subscription to the issue has been closed" may be issued after the actual closure of the issue.

7.6 Basis of Allotment

7.6.1⁸  In a public issue of securities, the Executive Director/Managing Director of the Regional Stock Exchange along with the post issue Lead Merchant Banker and the Registrars to the Issue shall be responsible to ensure that the basis of allotment is finalised in a fair and proper manner in accordance with the following guidelines:

Provided, in the book building portion of a book built public issue notwithstanding the above clause, Clause 11.3.5 of Chapter XI of these Guidelines shall be applicable.

7.6.1.1Proportionate Allotment Procedure

The allotment shall be subject to allotment in marketable lots, on a proportionate basis as explained below:

1. Applicants shall be categorised according to the number of shares applied for.
2. The total number of shares to be allotted to each category as a whole shall be arrived at on a proportionate basis i.e. the total number of shares applied for in that category (number of applicants in the category x number of shares applied for) multiplied by the inverse of the oversubscription ratio as illustrated below:

Number of times oversubscribed - 3

Proportionate allotment to category - 1,50,000 x 1/3

= 50,000

3. Number of the shares to be allotted to the successful allottees shall be arrived at on a proportionate basis i.e. total number of shares applied for by each applicant in that category multiplied by the inverse of the oversubscription ratio. Schedule XVIII of basis of allotment procedure may be referred to.

each applicant

Number of times oversubscribed - 3

Proportionate allotment to each

successful applicant - 100 x 1/3 = 33

(to be rounded off to 100)

4. All the applications where the proportionate allotment works out to less than 100 shares per applicant, the allotment shall be made as follows:

1. Each successful applicant shall be allotted a minimum of 100 securities; and
2. The successful applicants out of the total applicants for that category shall be determined by drawal of lots in such a manner that the total number of shares allotted in that category is equal to the number of shares worked out as per (ii) above.

5. If the proportionate allotment to an applicant works out to a number that is more than 100 but is not a multiple of 100 (which is the marketable lot), the number in excess of the multiple of 100 shall be rounded off to the higher multiple of 100 if that number is 50 or higher.
6. If that number is lower than 50, it shall be rounded off to the lower multiple of 100. As an illustration, if the proportionate allotment works out to 250, the applicant would be allotted 300 shares.
7. If however the proportionate allotment works out to 240, the applicant shall be allotted 200 shares.
8. All applicants in such categories shall be allotted shares arrived at after such rounding off.
9. If the shares allocated on a proportionate basis to any category is more than the shares allotted to the applicants in that category, the balance available shares for allotment shall be first adjusted against any other category, where the allocated shares are not sufficient for proportionate allotment to the successful applicants in that category.
10. The balance shares if any, remaining after such adjustment shall be added to the category comprising applicants applying for minimum number of shares.
11. As the process of rounding off to the nearer multiple of 100 may result in the actual allocation being higher than the shares offered, it may be necessary to allow a 10% margin i.e. the final allotment may be higher by 10 % of the net offer to public.

7.6.1.2.1 The above proportionate allotments of securities in an issue that is oversubscribed shall be subject to the reservation for small individual applicants as described below:

a) A minimum 50% of the net offer of securities to the public shall initially be made available for allotment to individual applicants who have applied for allotment equal to or less than 10 marketable lots of shares or debentures or the securities offered, as the case may be.

b) The balance net offer of securities to the public shall be made available for allotment to:

i) individual applicants who have applied for allotment of more than 10 marketable lots of shares or debentures or the securities offered and ;

ii) other investors including Corporate bodies/ institutions irrespective of the number of shares, debentures, etc. applied for.

c) The unsubscribed portion of the net offer to any one of the categories specified in (a) or (b) shall / may be made available for allotment to applicants in the other category, if so required.

Explanation

It is clarified that the words "a minimum of 50% of the public offer" used in sub-clause (a) above means that if the category of individual applicants upto 10 marketable lots was to be entitled to get 70% of the public offer in accordance with proportionate formula, the category should get 70%. If the category is entitled to get only 30% of the public offer in accordance with the proportionate allotment formula, there should be a reservation of a minimum of 50% of the net public offer.

⁹7.6.2 The drawal of lots (where required) to finalise the basis of allotment, shall be done in the presence of a public representative on the Governing Board of the Regional Stock Exchange.

¹⁰7.6.3 The basis of allotment shall be signed as correct by the Executive Director/Managing Director of the stock exchange and the public nominee (where applicable) in addition to the lead merchant banker responsible for post issue activities and the Registrar to the Issue. The stock exchange shall invite the public representative on a rotation basis from out of the various public representatives on its governing board."

7.7 Other Responsibilities

7.7.1 Lead Merchant Banker shall ensure payment of interest to the applicants for delayed dispatch of allotment letters, refund orders, etc. as prescribed in the offer document.

7.7.2 The Post-issue Lead Merchant Banker shall ensure that the despatch of refund orders / allotment letters /share certificates is done by way of registered post / certificate of posting as may be applicable.

7.7.3 In case of all issues, advertisement giving details relating to oversubscription, basis of allotment, number, value and percentage of applications received alongwith stockinvest, number, value and percentage of successful allottees who have applied through stockinvest, date of completion of despatch of refund orders, date of despatch of certificates and date of filing of listing application.

7.7.4 Such advertisement shall be released within 10 days from the date of completion of the various activities.

7.7.5 Post-issue Lead merchant banker shall continue to be responsible for post issue activities till the subscribers have received the shares/debenture certificates or refund of application moneys and the listing agreement is entered into by the issuer company with the stock exchange and listing/ trading permission is obtained.

7.8    Certificate Regarding Realisation of Stockinvests

7.8.1 The Post -Issue Lead Merchant Banker shall submit within two weeks from the date of allotment, a Certificate to the Board certifying that the stockinvests on the basis of which allotment was finalised, have been realised.