Discussion
The lDBI underwrites and --------------- the shares and debentures of industrial concern s.
Answer: B
Correct answer: subscribes to
Underwriting and subscribing are two distinct commitments, and IDBI did both. In underwriting, the institution agrees to take up whatever part of an issue the public does not, so the company is assured of its money whatever the market's response.
In subscribing, it buys securities directly for its own portfolio. Doing both meant IDBI could stand behind an issue and also invest in it, which was often what persuaded other investors to come in. Neither "imposes on" nor "targets" describes any capital-market operation, so the sentence only completes sensibly one way.
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