The companies can mention a price band of 20 per cent (cap in the price hand should not exceed 20 per cent of the floor price) in the offer document filed with the SEBI and the actual price can be determined at a later date before filing it with the ROCs (Registrar of Companies). If the Board of Directors (BOD) of the issuing company has been authorized to determine the offer price within a specified price hand, a resolution would have to be passed by them to determine such a price. The lead merchant bankers should ensure that in the case of listed companies, a 45-hour notice of the meeting of the BOD, for passing the resolution for determination of price, is given to the designated stock exchange. The final other document should contain only one price and one set of financial projections, if applicable.
Payment of Discounts/Commissions
Any direct/indirect payment in the nature of discount/ concision or otherwise cannot be made by the issuer company/promoters to any firm allotted in a public issue.