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
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:
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”.
Deputy General Manager
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|
Indicative timeline schedule for various activities
|Sl. No.||Details of Activities||Due Date
|Non-ASBA||ASBA through Syndicate
|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)|
|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.
|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
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.
|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
|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
|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.
|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.
|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.
|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.
|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.
|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.
|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.
|14||Trading commences||T+ 12|