The role of Underwriters in IPOs is of an important nature as they not only assist companies in raising funds through public offerings but also provide comfort to the prospective investors. For regulations of underwriters, SECP promulgated the Underwriter Rules, 2015 (Underwriters Rules) on April 02, 2015. All underwriters are required to be registered with SECP for providing business as underwriter. Underwriters Rules prescribes the eligibility conditions, registration procedure, duties and responsibilities of underwriters.
Registration of Underwriters
An application for registration by persons meeting the eligibility criteria as mentioned under Rule 4 shall be made to the Commission in Form ‘A’ along with all the documents specified in Annexures ‘A’ and ‘B’ of the Rules and receipt evidencing payment of non-refundable fee of such amount as set out in Schedule I.
The Commission, while considering the application for registration, may require the applicant to furnish such further information or clarification regarding its activities and businesses as it deems appropriate. The applicant shall, if so required by the Commission, appear before the Commission for personal representation through an officer duly authorized for this purpose in writing by the board of directors of the applicant.
Renewal of Underwriters
For renewal of registration, an underwriter shall, three months prior to the date of expiry of its registration, apply to the Commission in Form ‘C’ providing therewith a receipt evidencing payment of a non-refundable renewal fee of such amount as prescribed in Schedule I and documents as specified in Annexure ‘C’. The Commission if satisfied that the applicant continues to meet the requirements for registration and is eligible for renewal of registration shall renew the registration of underwriter and issue a certificate of renewal of registration to the applicant.