Volvo Ltd. is proposing to issue new shares through an online system of stock exchange and has entered into an agreement with a stock exchange. What would this type of stock exchange instrument be?

Open in App

Solution

Electronic Initial Public Offerings (eIPOs): When a company wants to offer its shares to the public it can now also do so online. An agreement is signed between the company and the relevant stock exchange known as the e-IPO.This system was introduced in India some three years ago by the SEBI. This makes the process of the IPO speedy and efficient. The company will have to hire brokers to accept the applications received. And a registrar to the issue must also be appointed.

Suggest Corrections

Similar questions

Q. ________means the appropriation of a certain number of shares to an applicant who has applied shares in public issue by the board of directors in consultation with stock exchange.

Q. _____ means the appropriation of a certain number of shares to an applicant who has applied shares in public issued by the board of directors in consultation with stock exchange.

'Efficient functioning of stock exchange creates a conducive climate for active and growing primary market for new issues as well as for an active and healthy secondary market.' In the light of this statement state any three functions of a stock exchange.

The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for a new public issue of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Q. The Directors of a Company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange. While the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Join BYJU'S Learning Program