SRS Limited (RHP) - Karvy

SRS Limited63. After this Issue, the price of the Equity Shares of the Company may be highly volatile or anactive trading market for the Equity Shares may not develop.The price of the Equity Shares of the Company on the Stock Exchanges may fluctuate after this Issueas a result of several factors, including: volatility in the Indian and global securities market; itsoperations and performance; performance of its competitors; the perception of the market with respectto its investments in its business operations; changes in the estimates of its performance orrecommendations by financial analysts; significant developments in India’s economic liberalization andde-regulation policies; and significant developments in India’s fiscal regulations. There has been nopublic market for the Equity Shares and the prices of the Equity Shares may fluctuate after this Issue.There can be no assurance that an active trading market for the Equity Shares will develop or besustained after this Issue or that the prices at which the Equity Shares are initially traded willcorrespond to the prices at which the Equity Shares will trade in the market subsequent to this Issue.64. There are restrictions on daily movements in the price of the Equity Shares of the Company,which may adversely affect a shareholder’s ability to sell, or the price at which it can sell, EquityShares at a particular point in time.Following the Issue, the Company will be subject to a daily ‘circuit breaker’ imposed by the StockExchanges, which does not allow transactions beyond specified increases or decreases in the price of itsEquity Shares. This circuit breaker operates independently of the index-based, market-wide circuitbreakers generally imposed by stock exchanges. The percentage limit on the circuit breakers will be setby the Stock Exchanges based on the historical volatility in the price and trading volume of its EquityShares.The Stock Exchanges do not inform the Company about the percentage limit of the circuit breaker fromtime to time and change it without its knowledge. This circuit breaker will limit the upward anddownward movements in the price of the Equity Shares. As a result of this circuit breaker, no assurancemay be given regarding the investors’ ability to buy or sell the Equity Shares or the price at which theinvestor may be able to buy or sell the Equity Shares at any particular time.65. Conditions in the Indian securities market may affect the price and liquidity of the Equity Sharesof the Company.Indian stock exchanges have in the past experienced substantial fluctuations in the prices of listedsecurities. These exchanges have also experienced difficulties that have affected the market price andliquidity of the securities of Indian companies, such as temporary exchange closures, broker defaults,settlement delays and strikes by brokers. In addition, the governing bodies of the Indian stockexchanges have from time to time restricted securities from trading, limited price movements andrestricted margin requirements. Further, disputes have occurred on various occasions between listedcompanies and the Indian stock exchanges and other regulatory bodies that, in some cases, have had anegative effect on market sentiment. If similar problems occur in the future, the market price andliquidity of the Equity Shares could be adversely affected. Further, a closure of or trading stoppage on,either of BSE or NSE could adversely affect the trading price of the Equity Shares of the Company.66. The Investor will not be able to sell immediately on an Indian stock exchange any of the EquityShares that they purchase in the Issue until the Issuer receives the required trading approvals.The Equity Shares of the Company will be listed on BSE and NSE. Pursuant to Indian regulations,certain activities must be completed before the Equity Shares can be listed and dealt-in. Upon receipt offinal approval from the Stock Exchange(s), trading in the Equity Shares is expected to commencewithin 12 working days from the Bid / Issue Close Date. The Company cannot assure that the EquityShares will be credited to investors’ demat accounts or that trading in the Equity Shares willcommence, within the time periods specified above. Any delay in obtaining the approvals wouldrestrict the investors’ ability to dispose of its Equity Shares.xxxii