- The primary market is where securities created (by means of an IPO) in others words provide the channel for sale of new securities.
- Primary market provides opportunity to issuers of securities government as well as corporates, to rise resource to meet their requirements of investment and discharge some obligation.
- Corporates may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity debt etc. they may issue the securities in domestic market and international market.
- SEBI examines the prospectus issued to the public for subscription of shares to see that it meets with the requirements of the SEBI Regulations.
- Companies issuing securities via the primary market hire merchant bankers who, on behalf of the company, prepare the prospectus and ensure related compliance for the issue of shares viz. finalization of allotment process, listing of shares in the stock exchanges, etc.
- An investor can now apply for shares in the primary market through ASBA.
