The Security and Exchange Board of India vide its notification dated 30th March 2021 has published the Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2021.
Through this amendment SEBI has incorporated a new term Underwriting which “means “an agreement to subscribe to or procure subscription for securities, issued or offered for sale, remaining unsubscribed.
Every stock broker holding a valid certificate of registration shall be entitled to act as an underwrite and shall enter into a valid agreement with the body corporation whose behalf it is acting as underwriter and shall abide by the regulations made under the Act in respect of the activities carried on by it as underwriter.
Further every Stock Broker acting as an underwriter shall also maintain the following records with respect to—
a)details of all agreements
b)total amount of securities of each body corporate subscribed to in pursuance of an agreement
c)such other records as may be specified by the Board for underwriting.
