SECURITIES AND EXCHANGE BOARD OF INDIA
PRIMARY MARKET DEPARTMENT
Mittal Court, ‘A’ Wing, Ground Floor
Nariman Point, MUMBAI – 400 021.
TEL NO. : 2850451- 56/ 2880962-70 FAX NO. :204 5633
BTI (G I Series) Circular No. 1(2000-2001) May 11, 2001
To All Bankers to an Issue registered with SEBI under ‘Securities and Exchange Board of India (Bankers to an Issue) Rules and Regulation, 1994
Dear Sirs,As you are aware that in terms of sub-Regulation (2) of Regulation 14 of the SEBI (Bankers to an Issue) Regulations, 1994, the agreement between a banker to an issue and the body corporate shall inter alia contain the clauses stipulating the time within which the statement regarding the application and application monies received from the investors will be forwarded to the Registrar to an Issue or the body corporate, as the case may be. Further, the agreement shall also stipulate that a daily statement will be sent by the designated controlling branch of the Bankers to the Issue, to the Registrar to the Issue indicating the number of applications received on that date and the amount of the application monies received.In the interest of the investors it has been the endeavour of SEBI to reduce the time period involved between closure of the issue and listing of the securities. The SEBI (Disclosure and Investor Protection) Guidelines, 2000 specify a maximum period of 30 days for allotment after the closure of the issue. In the case of book built issues the allotment is required to be done within 15 days of closure of issue. The Registrar to the Issue may be able to finalize the basis of allotment of securities only on timely receipt of details of collection figures, the applications and the application monies received.Therefore, you are advised to ensure that the applications, details regarding the application and application monies received from the investors investing in the issue of a body corporate and the final certificate are furnished to the Registrar to the Issue ,the lead manager and the body corporate, before the expiry of 7 working days after the date of closure of issue.These instructions shall be applicable to all issues including book built issues, opening on and from June 1, 2001. You are advised to ensure that appropriate systems, procedure and infrastructure are in place at the collecting and controlling branches for compliance with the above.These instructions have been issued in exercise of the powers conferred under section 11 of the Securities Exchange Board of India Act, 1992 and in furtherance of the requirements of the Securities and Exchange Board of India (Bankers to an Issue) Rules and Regulations, 1994.Please note that non-compliance with the above-mentioned instructions will attract penal action under the Securities and Exchange Board of India, Act 1992 and SEBI (Bankers to an Issue) Rules and Regulation, 1994.
Yours faithfully
P.R.Ramesh
DIVISION CHIEF
PRIMARY MARKET DEPARTMENT
