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Non-retail investors to mandatorily use ASBA facility

CIRCULAR

CIR/CFD/DIL/1/2011 , Dated- April 29, 2011

To All Stock Exchanges

To All Registered Merchant Bankers

To All Registered Registrars to an Issue To All Registered Bankers to an Issue To All Registered Stock Brokers

Dear Sirs,

Sub.: Applications Supported by Blocked Amount (ASBA) facility

1. SEBI has issued circular no. CIR/CFD/DIL/8/2010 dated October 12, 2010, enabling the syndicate / sub-syndicate members to procure ASBA forms (hereinafter referred as “Syndicate ASBA”) from the investors, upload the bid and other relevant details of such ASBA forms in the bidding platform and thereafter forward the ASBA forms to the SCSBs. SCSBs shall carry out further action for the ASBA forms such as signature verification, blocking of funds and forward the forms to the registrar to the issue.

    2. The respective intermediaries shall take note of the following:

    a. Bidding Centers: ASBA facility through syndicate / sub-syndicate member shall initially commence with the following bidding centers:

      1. Mumbai
      2. Chennai
      3. Kolkata
      4. Delhi
      5. Ahmedabad
      6. Rajkot
      7. Jaipur
      8. Bangalore
      9. Hyderabad
      10. Pune
      11. Baroda

      The syndicate / sub-syndicate members located in the abovementioned centers shall accept ASBA forms. Before accepting these ASBA forms syndicate / sub-syndicate members shall satisfy themselves that the SCSBs whose name has been filled in the ASBA form has named a branch in that centre to accept ASBA forms.

      b. Naming of Branch: All the SCSBs which are providing ASBA facility in any of the above mentioned centers are required to name atleast one branch where syndicate / sub-syndicate members can submit the ASBA forms. The format in which SCSBs has to provide to SEBI the details of the branch to accept ASBA forms from the syndicate / sub- syndicate member is placed at Annexure A. This list would be displayed on the website of SEBI.

      c. Syndicate ASBA process: An indicative process flow for ASBA through syndicate members vis-à-vis non-ASBA is placed at Annexure B.

      3. It has been decided that non-retail investors i.e. Qualified Institutional Buyers and Non-Institutional Investors, making application in public/ rights issue shall mandatorily make use of ASBA facility. In this regard, disclosures shall be made in the offer document such as in issue procedure section as part of payment instructions.

      4. Merchant Bankers shall ensure that appropriate disclosures are made in the offer document in this regard.

      5. All intermediaries are directed to comply with the instructions contained in this circular.

      6. This circular shall be applicable for Red Herring Prospectus/ Prospectus / Letter of Offer filed with Registrar of Companies/ Stock Exchanges, as the case may be, on or after May 2, 2011.

      7. This circular is issued in exercise of the powers conferred under Section 11 read with Section 1 1A of the Securities and Exchange Board of India Act, 1992.

      8. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Issues and Listing”.

      Yours faithfully,

      Sanjay Purao
      Deputy General Manager
      +91-22-26449612

      Annexure A

      Format for providing the details of the branches named for Syndicate ASBA

      All SCSBs are required to submit to SEBI the details of the branches, in the format as below, where syndicate / sub-syndicate members are required to submit bidded Syndicate ASBA forms:

      Details of Branch for Syndicate ASBA:

      Branches named for Syndicate ASBA
      Sl. No. Bidding Centre Branch Address Contact Person Contact Number Fax Email
      1.
      2.

       

      Annexure B

      Indicative timeline schedule for various activities

      Sl. No. Details of Activities Due Date
      (Working
      Day)
      Non-ASBA ASBA through Syndicate
      Member
      1. Investor submits a completed bid cum application form to Syndicate /Sub-Syndicate Member, who shall upload bid

      details       in     the      electronic

      bidding      system      of     stock
      exchange(s).

      Syndicate members need to ensure that required documents are attached with the application form.

      		 Investor submits a completed bid cum application form indicating the mode of payment option as ASBA to Syndicate Member.

      Syndicate Member shall give an acknowledgement by giving the counter foil as proof of having accepted his/ her application.

      Syndicate Member shall upload bid     details    in    the     electronic

      bidding        system       of       stock
      exchange(s).

      		 Issue

      opening date to          issue

      closing    date

      (where T is issue closing date)
      2. Issue closes. T
      3. Stock exchange(s) to allow syndicate members to undertake modification of select fields in the bid details already uploaded.

      Registrar    to    get   the    electronic    bid   details   from    the    stock
      exchanges at the end of the day.

      		 T+1
      4. Issuer, merchant banker and registrar    to   submit    relevant

      documents       to     the      stock

      exchange(s)       except     listing

      application,     allotment    details
      and demat credit and refund

      details    for    the    purpose    of
      listing permission.

      Syndicate         members        to

      forward            a           schedule

      (containing                application
      number, payment instrument

      number          and         amount),

      application          forms         and

      payment         instruments        to
      collecting banks.

      Collecting     banks    may    not

      accept      bid    schedule,     bid

      applications      and     payment
      instrument after T+2 day.

      		 Syndicate members to forward a schedule (containing application number and amount) along with application forms to the branch named for ‘Syndicate ASBA’ of the respective SCSBs for blocking of Fund.

      Designated branches may not accept schedule and applications after T+2 day.

      		 T+2
      Registrar      to    give    bid    file

      received       from      the      stock

      exchanges        containing      the

      application         number       and

      amount to all the collecting banks who can use this file for validation at their end.

      Registrar        to       commence
      validation of the electronic bid

      details with depositories records for DP ID, Client ID and PAN.

      		 Registrar to give bid file received from        the      stock      exchanges

      containing          the         application

      number         and        amount        to

      respective SCSBs duly sorted centre wise who may use this file for reconciliation.

      SCSBs to start blocking funds.
      5. Registrar          to          continue
      validation of the electronic bid 

      details       with       depositories
      records.

      Collecting             banks           to

      commence         clearing         of
      payment instruments.

      		 Blocking funds continues. T+3
      6. Registrar          to         complete
      validation of the electronic bid 

      details       with       depositories
      records.

      Collecting       banks     to     start

      forwarding application forms along with bank schedules to registrar.

      		 SCSBs to start forwarding application forms along with bank schedules to registrar. T+4
      7. Registrar to prepare list of rejected bids based on mis-match between electronic bid details and depositories data base.

      Registrar to      undertake    “Technical    Rejection”   test   based   on
      electronic bid details and prepare list of technical rejection cases.

      		 T+5
      8. Collecting banks to submit status of clearance status of payment instrument i.e. “Final Certificate” to the registrar. SCSBs     to     submit     status     of

      blocking      of     fund     i.e.     “Final
      Certificate” to the registrar.

      		 T+6
      9. Collecting banks/SCSBs to ensure that all application forms are forwarded to the registrar.

      Registrar to undertake and complete reconciliation of final certificate received from the collecting banks with electronic bid details.

      Registrar submits the final basis of allotment to Designated Stock Exchange(s) for approving the basis of allotment.

       

      		 T+7
      10. Designated stock exchange(s) to approve the basis of allotment.

      Registrar to prepare funds transfer schedule based on approved allotment.

      Registrar to give instructions to depositories to carry out lock-in for pre issue capital.

      		 T+8
      11. Registrar     and     merchant     banker    to    issue                     funds  transfer
      instructions to collecting banks/SCSBs. 

      Collecting     banks/SCSBs to     credit the funds                      in                               Public                      Issue
      Account of the issuer and confirm the same.

      Issuer to make allotment.

      Registrar to give instruction to depositories for credit of shares to successful allottees.

      Registrar to receive confirmation for pre-issue capital lock-in from depositories.

      		 T+9
      12. 12 Issuer and registrar to file allotment details with designated stock exchange(s) and confirm all formalities are completed except demat credit and refund.

      Registrar to complete refund dispatch.

      Registrar to issue bank-wise data of allottees, allotted amount and refund amount to collecting banks/SCSBs.

      		 T+10
      13. 13 Registrar     to     receive    confirmation     of                      demat              credit                from
      depositories and submit the same to the stock exchange(s). 

      Issuer and registrar to file confirmation of demat credit and refund dispatch with stock exchange(s).

      Issuer to make a listing application to stock exchange(s) and stock exchanges to give listing and trading permission.

      Issuer,     merchant    banker   and   registrar   to                 publish        allotment
      advertisement before the commencement of trading, prominently

      displaying the date of commencement of trading, in all the newspapers where issue opening/closing advertisements have appeared earlier.

      Stock exchange(s) to issue commencement trading notice.

      		 T+1 1
      14 Trading commences T+ 12

      Related posts:

      1. Applications Supported by Blocked Amount (ASBA) facility in public issues
      2. After Retail Investor Sebi extended ASBA facility to corporate and HNIs
      3. SEBI circular on Applications Supported by Blocked Amount (ASBA) facility in public issues- CIR/CFD/DIL/2/2010 April 06, 2010
      4. SEBI circular on Applications Supported by Blocked Amount (ASBA) facility in public issues- CIR/CFD/DIL/7/2010 , Dated- July 13, 2010
      5. SEBI extends deadline for ASBA facility in NFOs to October 1 2010

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