SEBI vide its circular dated 15 February 2018 has directed that RIIs applying for shares in IPO should be compensated if Self Certified Syndicate Banks (SCSB) fail to make the allotment despite of RIIs eligibility. In order to bring uniformity in the calculation of compensation available to the RIIs, SEBI has stated that the compensation shall be calculated as below: (Listing price– issue price) *multiplied by* (no. of shares that would have been allotted if a bid was successful) *multiplied by* (probability of allotment of shares determined on the basis of allotment).
