Syndicate members are commercial or investment banks responsible for underwriting
IPO's. Syndicate members are usually registered with SEBI or registered as brokers
with BSE / NSE Stock Exchanges.
They work as intermediaries for Issuer Company and the buyers of the IPO stocks.
Investors submit their bids for IPO shares through Syndicate Members appointed by
the Issuer Company.
They are also known as 'The Members of the Syndicate'.The Members of the Syndicate
circulate copies of the Red Herring Prospectus along with the bid cum application
form to potential investors. They are also responsible for accepting the bids, payments
and application forms for the public issue. After receiving the bid for IPO Shares
from an investor, Syndicate Member enters bidding detail into the electronic bidding
system and generates a Transaction Registration Slip ("TRS") for each price and
demand option and give the same to the bidder.The Bidder can make the revision to
the bid any number of times during the Bidding Period.
However, for any revision(s) in the Bid, the Bidders should use the services of
the same member of the Syndicate through whom he or she had placed the original
The Members of Syndicate deposit all the money received from investors to the Escrow
Account opened by the Issuer Company. The Bid cum Application Form along with other
supporting documents is then send to the registrar of the issue for further processing.