2.  India
its fee-based. Becomes contingently fund-
based.
 USA
its fund-based

3.  India
Standby support that would devolve on the
underwriter only if the issue is under-
subscribed
 USA
Firm underwriting wherein the underwriters
guarantee the issue irrespective of investors’
response.

4.  India
It provides a contingent obligation on the
underwriter to purchase the securities on
offer.
 USA
it is a contract of purchase and sale wherein
underwriters purchase securities from the
issuer at a lower price and sell them to
investors at the offer price.

5.  India
To the extent of devolvement.
 USA
To the extent of amount underwritten.

6.  India
Providing marketing support, moving the
market through distribution and taking up
devolvement if any.
 USA
Taking the risk of guarantee, pricing the offer,
moving the market and allocation to dealers
and investors.

7.  India
Underwriting commission. This is a fee
earmarked as a percentage to the
underwriting obligation
 USA
Main compensation is the underwriting
spread, i.e. the spread b/w offer price and
the price paid to the issuer company.

8.  India
Contingent risk that is a function of market
risk, waiting risk and pricing risk.
 USA
Actual risk which is a function of market risk,
waiting risk and pricing risk.

9.  India
Decided by the issuer. Used in an over-
subscribed offer to provide additional
allotments to investors.
 USA
Decided by the underwriter. Used in an over-
subscribed issue to provide additional
allocation to investors.

10.  India
Allotment are made directly to investors as per
SEBI guidelines by the issuer company in
consultation with the stock exchange . Post-
issue lead manager oversees the function.
Therefore, allotments are governed by statutory
norms.
 USA
The lead underwriter decides allocation of
shares to syndicate members. The syndicate
members in turn decide allocations to their
investors. Allocations are entirely at the

11.  India
Underwriting Agreement- b/w issuer and
each underwriter.
Broker Agreement – b/w issuer and broker to
issue.
 USA
Underwriting Agreement-b/w issuer and lead
underwriter.
Agreement among underwriters- inter se b/w

12. From
Ankit Chauhan
MBA-IV