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A) In a fixed price offer, the underwriting obligation is to the extent of the NPO as reduced by promoters’ contribution and reservations

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A) In a fixed price offer, the underwriting obligation is to the extent of the NPO as reduced by promoters’ contribution and reservations.

(a) True       (b) False

B. In a public issue, the issue has under-performed till the last day. The management requests the

underwriters to subscribe to their commitments and close the issue successfully, which the underwriters   refuse to do. This has the following implication(s):

(a) The company can proceed legally against the underwriters

(b) The underwriters can be given firm allotments without their asking

(c) The company can cancel the issue

(d) The company can reduce the size of the issue

(e) The underwriters can be arrested for fraud

(f) The company can be prosecuted for false claims.