Match each capital market capital-raising intermediary or institution on the left with its primary function or regulatory responsibility on the right.
- Issuing HouseStructures new public issues, prepares the prospectus, files regulatory documents, and packages corporate securities for market introduction.
- RegistrarMaintains official share ownership registers, verifies share transfer documentation, and dispatches dividend warrants to shareholders.
- UnderwriterGuarantees the full subscription of an issue by agreeing to purchase any unsubscribed shares or debentures for an agreed commission.
- Central Securities Clearing System (CSCS)Operates the central electronic depository system that enables automated clearing, settlement, and dematerialized transfer of traded securities.
Answer
Issuing House matches with structuring new public issues and preparing the prospectus; Registrar matches with maintaining share registers and dispatching dividend warrants; Underwriter matches with guaranteeing full subscription of unsubscribed shares; Central Securities Clearing System (CSCS) matches with operating the automated electronic clearing and depository system.
Each intermediary fulfills a distinct operational role in capital market transactions: Issuing Houses structure new public security issues, Registrars maintain shareholder registers and handle dividend distributions, Underwriters guarantee full subscription by absorbing unsold shares, and the Central Securities Clearing System (CSCS) provides electronic depository and automated trade settlement.
Step-by-Step Solution
Key Concept
Capital Market Intermediaries and Infrastructure Roles