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Underwriting Agreements in India: Existing Regulations and Needed Reforms

The institution of underwriting has evolved as a life saver for the companies since adoption of LPG policy in India. In simplest way of speaking, it is a back-up plan of the companies from suffering any loss. The SEBI (Underwriters) Regulation 1993 is the provision of law which regulates the agreements of underwriters for buying of securities which wasn’t subscribed by the existing shareholders.
This article after giving a brief backdrop of what underwriting is and how it is developing in India, will discuss benefits and types of the underwriting agreements, commission need to be paid in this regard and provision related to minimum subscription. Then the article will try to analyse the Regulation ’93 and other related statutory provision in order to determine if there exist any conflict. The suggestions made in Bhansali Committee Report of 2002 have been taken as the parameter for the same. Analysing that and having pointed out the position of law and conflict in same, the paper will end with prospective solution in regard to the same.

Abhijeet Kumar, Underwriting Agreements in India: Existing Regulations and Needed Reforms, [2015] I.C.C.L.R. (9), 295-301, International Company and Commercial Law Review, Sweet & Maxwell.

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