Underwriting

Underwriting entails an agreement whereby a person or organisation agrees to take a specified number of share or debenture. Specified amount of stocks offered to the public in the event of the public not subscribing to it. In underwriters to issues of capital who agree to take up.

Securities which are not fully subscribed either by others or by themselves .

Following are the features of underwriting

1) Make all efforts to protect the interests of its client.

2) Maintain high standard of integrity of and fairness in the conduct of its business .

3)Ensure that it and it’s personal will act in an ethical manner in all its dealings with a body corporate making an issue of securities .

4)Endeavour to ensure all professional dealings are effected in a prompt , efficient and effective manner.

5) At all times render high standard of service, exercise due diligence , ensure proper care and exercise independent profession.

6) Avoid conflict of interest and make adequate disclosure of his interest.

7) Not discriminate amongst it’s v client ,save and except on ethical and commercial considerations.

8)Not discriminate amongst it’s clients, save and except on ethical and commercial considerations.

9 Not either through its account or their respective accounts or through their associate or family members relatives or friends indulge in any insider trading.

10) Provide adequate freedom and power to its compliance officer for the  effective discharge of his duties.

11)Ensure that good corporate policies and corporate governance is in place.

12)Ensure that it has adequate resources to supervise diligently. Does supervise diligently persons employed or appointed by it to conduct business on its behalf.

13)Be responsible for the acts or omissions of its employees and agents in respect to the conduct of its business.

15) Ensure that the senior management, particular decision makers have access to all relevant information about the business on a timely basis.

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