In which year were regulations for underwriters issued by SEBI?
Show answer & explanation
Correct answer: C
Explanation
Regulations for underwriters were issued by the Securities and Exchange Board of India (SEBI) in 1993.
These rules are officially known as the "SEBI (Underwriters) Rules and Regulations, 1993."
Key Points:
Function of an underwriter: These are institutions or individuals who, at the time of a public issue (IPO), guarantee that if the shares are not purchased by the public, they will purchase them themselves.
Objective: The main objective of these regulations is to bring transparency to the capital market and protect the interests of investors.
Registration: Any person or entity acting as an underwriter must obtain a registration certificate from SEBI.