Devolvement

This article is about a specialist concept in banking. For the more general concept for which this name is often a synonym, see devolution (disambiguation).

In the investment banking sector, particularly in India, devolvement is a process whereby if an investment issue is undersubscribed, an underwriter is required to subscribe to the remaining shares. The outstanding unsubscribed amount devolves onto the underwriter.^[1] This is also known as hard underwriting.^[2] The Securities and Exchange Board of India publishes guidelines and a recommended method of computation relating to the extent of the devolvement onto a particular underwriter in the case where there are multiple underwriters, or sub-underwriters.^[1]

Notes

1. ^ ^{a b} Subramanyam 2008, p. 9–4.
2. ^ CompetitionCommission 1999, p. 58.

References

• Subramanyam, Pratap G (2008). "Underwriting". Investment Banking: Concepts, Analyses, and Cases. Tata McGraw-Hill Education. ISBN 9780070656901. 
• "3. The share-issuing process". Underwriting services for share offers: A report on the Supply in the UK of underwriting services for share offers. Competition Commission. 1999. http://www.competition-commission.org.uk./rep_pub/reports/1999/fulltext/424c3.pdf. 

Further reading

• (PDF) Frequently Asked Questions on Primary Market Issuances. Securities and Exchange Board of India. http://investor.sebi.gov.in./faq/pubissuefaq.pdf.