In case the issuer company is making an issue of securities to the public through book-building, the entire net offer (i.e. 100% and 75% respectively) should be compulsorily written by the syndicate members/book runner(s). However, this requirement would not apply to 50 per cent of the net offer to the public mandatory to me allotted QIBs in case of public issue/offer for sale by unlisted companies through book-building. The is indicate members should enter into an underwriting agreement with the book runner(s) indicating the number of securities that they would subscribe at the predetermined price. The book runner(s) should, in turn, enter into an underwriting agreement with the issuer company. In the event of the syndicate members not fulfilling their underwriting obligations, the book runner(s) would be responsible for bringing in the amount devolved.

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