The term devolvement can be defined as the delegation of authority especially from a central authority to a regional government. Delegation refers to the process of giving some of your work, duties or responsibilities to a more junior person or organisation.

When the undersubscription of a security issue forces the underwriting investment bank to purchase unsold securities during an offering. Devolvement is often an indication that the market currently has negative sentiments toward the issue. This negative sentiment can have a significant impact on subsequent demand.