Equal treatment of STOCKINVEST

May 29, 1992
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Circulars

  

Our ref: SE/4480/92
May 29, 1992

To,

Presidents and Executive Directors
of the Stock Exchanges

Dear Sir,

Equal treatment of STOCKINVEST

You are aware that with a view to helping the investors, a new instrument namely "STOCKINVEST" has been introduced for enabling investors to subscribe to Public Issues. However, we have received reports that there is a feeling among the underwriters and brokers that the applications with "STOCKINVEST" may be discriminated in respect of chances of allotment compared to the other applications, as according to them. "STOCKINVEST" applications are to be sorted and tabulated separately.

Since the allotment of securities are made by the companies in consultation with the Stock Exchanges, we advise you to ensure that the "STOCKINVEST" applications have the same opportunity as the applications made through cheques, demand drafts and cash payments and leave no chance for any discriminatory treatment.

Please acknowledge the receipt of this letter.

Yours faithfully,
sd/-
 

U.C. DIKSHIT
Head (Secondary Market Depart. - I)