Devolvement
{{Short description|Concept in investment banking}}
{{about|a specialist concept in banking|the more general concept for which this name is often a synonym|devolution (disambiguation)}}
In the investment banking sector, particularly in India, devolvement is a process whereby if an investment issue is undersubscribed, an underwriter is required to subscribe to the remaining shares. The outstanding unsubscribed amount devolves onto the underwriter.{{sfn|Subramanyam|2008|p=9–4}} This is also known as hard underwriting.{{sfn|CompetitionCommission|1999|p=58}} The Securities and Exchange Board of India publishes guidelines and a recommended method of computation relating to the extent of the devolvement onto a particular underwriter in the case where there are multiple underwriters, or sub-underwriters.{{sfn|Subramanyam|2008|p=9–4}}
Notes
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References
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- {{cite book|title=Investment Banking: Concepts, Analyses, and Cases|first=Pratap G|last=Subramanyam|chapter=Underwriting|publisher=Tata McGraw-Hill Education|year=2008|isbn=978-0-07-065690-1|url-access=registration|url=https://archive.org/details/schoolsintransit0000tyek}}
- {{citation |mode=cs1 |ref=CITEREFCompetitionCommission1999 |chapter-url=http://www.competition-commission.org.uk./rep_pub/reports/1999/fulltext/424c3.pdf|publisher=Competition Commission|title=Underwriting services for share offers: A report on the Supply in the UK of underwriting services for share offers|year=1999|chapter=3. The share-issuing process |archive-url=https://web.archive.org/web/20030731063030/http://www.competition-commission.org.uk./rep_pub/reports/1999/fulltext/424c3.pdf |archive-date=2003-07-31}}
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Further reading
- {{cite web|url=http://investor.sebi.gov.in./faq/pubissuefaq.pdf|title=Frequently Asked Questions on Primary Market Issuances|publisher=Securities and Exchange Board of India}}
Category:Capital markets of India
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