According to the SEBI, the spread between the floor and the cap of the price band shall not be more…
The maximum spread is 20% of the floor price. Under Regulation 29(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the cap on the price band…
Choose your answer
According to the SEBI, the spread between the floor and the cap of the price band shall not be more than __________.
Answer and explanation
Correct answer A
The maximum spread is 20% of the floor price. Under Regulation 29(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the cap on the price band cannot exceed 120% of the floor price, giving a maximum spread of 120% − 100% = 20% of the floor price.
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West Bengal SET (WB SET)