State in brief the obligation of a banker to an issue.
Ans. A banker to an issue has following obligations:
(a) Acceptance of application along with application money from the investors in respect of issue of capital and refund of application money
(b) Each banker to the issue has to enter into an agreement with the issuing company detailing the number and addresses of collection centres at which applications and application money is to be received.
(c) The designated controlling branch of the banker has to submit to the issuing company / registrar a daily statement giving information on the number of applications and the amount received as application money.
(d) It has to submit the following information to SEBI:
(i) The details of issue for which it has been designated a banker to the issue;
(ii) The number of applications and application money received;
(iii) The date-wise details when application forms were forwarded to the issuing company/ registrar to an issue.
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