The term origination refers to the work of investigation and analysis and processing of new proposals. These two functions are performed by the specialist agencies which act as the sponsors of issues. One aspect is the preliminary investigation which entails a careful study of technical, economic, financial, and legal aspects of the issuing companies. This is to ensure that it warrants the backing of the issue houses in the sense of lending their name to the·company and, thus, give the issue the stamp of respectability, to satisfy themselves that the company is strongly based, has good market prospects, is well managed and is worthy of stock exchange quotation. In the process of origination the sponsoring institutions render, as a second function, some services of an advisory nature which go to improve the quality of capital issues. These services include advice 00 such aspects of capital issues as: (i) determination of the class of security to be issued and price of the issues in the Ii&ht of market Conditions, timing and magnitude of issues, (iii) methods of notation, and (iv) technique of selling, and 00. The importance of the specialized services provided by the NIM organisation in this res can hardly be over stressed in view of its pivotal position in the process of notation of capital in the NIM. On the thoroughness of in designation soundness of judgement of the sponsoring institutions depends, to a large extent, the allocative efficiency of the market.

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