CIRCULAR

General Manager

Corporation Finance Department

SEBI/CFD/DI L/ASBA/1/2009/30/12

December 30, 2009

To All Registered Bankers to an Issue To All Registered Merchant Bankers To All Registered Registrars to an Issue To All Stock Exchanges

Dear Sirs,

Sub.: Applications Supported by Blocked Amount (ASBA) facility in public issues and rights issues.

1. In its continuing endeavour to make the existing public issue facility more efficient, SEBI had introduced ASBA (ASBA Phase I) as a supplementary facility of applying in public issues, vide its circular dated July 30, 2008 which was available to retail individual investors in public issues only. The ASBA Phase I was subsequently extended to rights issues vide circulars dated September 25, 2008 and August 20, 2009.

2. The main features of ASBA facility are as follows:

a. Meaning of ASBA: ASBA means ‘Application Supported by Blocked Amount’ as defined in clause (d) of sub‐regulation (1) of regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

b. Self Certified Syndicate Bank (SCSB): SCSB has the same meaning as given to it in clause (zi) of sub‐regulation (1) of regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. A bank desirous of being a SCSB in ASBA Phase II facility, shall submit a certificate to SEBI as per the format given in Annexure I, for inclusion of its name in SEBI’s list of SCSBs.

A SCSB shall identify its Designated Branches (DBs) at which an ASBA investor shall submit ASBA and shall also identify the Controlling Branch (CB) which shall act as a coordinating branch for the Registrar to the Issue, Stock Exchanges and Merchant Bankers. The SCSB, its DBs and CB shall continue to act as such, for all public and rights issues to which ASBA facility is applicable. The SCSB may identify new DBs for the purpose of ASBA facility and intimate details of the same to SEBI, after which SEBI will add the DBs to the list of SCSBs maintained by it. The SCSB shall

communicate the following details to Stock Exchanges for making it available on their respective websites. These details shall also be made available by the SCSB on its website:

(i) Name and address of the SCSB;

(ii) Addresses of DBs and CB and other details such as telephone number, fax number and email ids;

(iii) Name and contact details of a nodal officer at a senior level from the CB.

c. Eligibility of Investors for ASBA: The following investors are eligible to apply
through ASBA:‐

(i) In public issues: All investors except Qualified Institutional Buyers (QIBs) are eligible to apply through ASBA in public issues;

(ii) In rights issues: All shareholders of the issuer company as on the record date provided if he! she!it:

(a) is holding shares in dematerialised form and has applied for entitlements and !or additional shares in the issue in dematerialised form;

(b) has not renounced his! her entitlements in full or in part;

(c) is not a renouncee to the Issue;

(d) applies through a bank account maintained with SCSBs. d. ASBA Facility in brief:

(i) An ASBA investor shall submit an ASBA physically or electronically through the internet banking facility, to the SCSB with whom, the bank account to be blocked, is maintained. The SCSB shall then block the application money in the bank account specified in the ASBA, on the basis of an authorisation to this effect given by the account holder in the ASBA. The application money shall remain blocked in the bank account till finalisation of the basis of allotment of the issue or till withdrawal! failure of the issue or till withdrawal! rejection of the application, as the case may be. The application data shall thereafter be uploaded by the SCSB in the electronic bidding system through a web enabled interface provided by the Stock Exchanges. Once the basis of allotment is finalized, the Registrar to the Issue shall send an appropriate request to the CB of SCSB for unblocking the relevant bank accounts and for transferring the requisite amount to the issuer’s account designated for this purpose. In case of withdrawal! failure of the issue, the amount shall be unblocked by the SCSB on receipt of information from the pre‐issue merchant bankers through the concerned Registrar to the Issue. The ASBA facility is given in detail in Annexure II.

(ii) ASBA facility in rights issue shall enable a shareholder of the company as on record date to apply through ASBA mode by selecting the option of ASBA either (i) in Part A of the application form of rights issue, or (ii) in the plain paper application as to whether they desire to avail of the ASBA option, to

the Self Certified Syndicate Bank (SCSB) with whom the bank account to be blocked, is maintained.

(iii) Subject to (ii) above, the ASBA process from the time of submission of application by the applicants till transfer of shares in the depository account of the investors, as specified for public issues, shall be followed in the case of rights issues also to the extent relevant for rights issue. The role and responsibilities of self certified syndicate banks, stock exchanges, registrars and merchant bankers for public issues, shall be applicable mutatis mutandis to rights issue also.

e. Obligations of the Issuer: The issuer shall ensure that adequate arrangements are made by the Registrar to the Issue to obtain information about all ASBAs and to treat ASBA similar to non‐ASBA applications while finalizing the basis of allotment, as per the procedure specified in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

3. Timelines for implementation of ASBA Phase‐II: ASBA Phase‐II shall be applicable to all public issues and rights issues with single payment option which are opening on or after January 1, 2010.

4. Banks who are registered with SEBI as Bankers to issue in terms of SEBI (Bankers to an Issue) Regulations, 1994 and are desirous of participating as Self Certificate Syndicate Bank (SCSB ) in ASBA Phase II, are advised to (i) undertake the necessary modifications in their system as per the instructions of the Stock Exchanges providing electronic interface for ASBA, (ii) complete the mock trial run of their systems with such stock Exchanges as well as with specified Registrars and (iii) certify to SEBI about their readiness to implement ASBA Phase II as per the format in Annexure I.

5. Further, it is advised that after January 1, 2010, electronic interface provided by Stock Exchanges (presently BSE and NSE) will not be able to accept any application in any issue (public or rights) from any bank which has not given the certificate of readiness for ASBA Phase II to SEBI. Thus, such SCSBs shall not be eligible to accept ASBA application in any issue w.e.f. January 1, 2010, till they modify their systems and certify their readiness for ASBA Phase II to SEBI.

6. SEBI would be displaying names and other relevant details of SCSBs which will be authorized to accept the applications under ASBA w.e.f. January 1, 2010, on the website: www.sebi.gov.in.

7. On inclusion in the list of SCSBs, a bank shall commence its activities as a SCSB for ASBA Phase II, from the date as may be indicated in the list. It shall then be deemed to have entered into an agreement with the issuer and shall be required to offer the ASBA facility to all its account holders for all issues to which ASBA facility is applicable. By

virtue of the said deemed agreement issuer, shall be deemed to have agreed to pay the commissions to SCSBs, within a reasonable time.

8. The details of the role and responsibilities of Intermediaries such as SCSBs, Registrars, Merchant Bankers and Stock Exchanges in the ASBA facility are given in Annexure III, for due compliance by the respective intermediary.

9. This circular shall be applicable with immediate effect. Circular No

SEBI/CFD/DI L/DI P/31/2008/30/7 dated July 30, 2008, circular No.

SEBI/CFD/DIL/DIP/2008/25/09 dated September 25, 2008 and circular No. SEBI/CFD/DIL/DIP/38/2009/08/20 dated August 20, 2009, on ASBA, stand withdrawn with effect from the date of this circular.

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

Yours faithfully,

Neelam Bhardwaj

Encl.:

Annexure I – Certification by Self Certified Syndicate Banks (SCSBs)

Annexure II – Details of Applications Supported by Blocked Amount (ASBA) facility. Annexure III – Role and responsibilities of the intermediaries.

Annexure I

CERTIFICATION BY SELF CERTIFIED SYNDICATE BANKS (SCSBs) FOR IMPLEMENTATION OF ASBA PHASE II

All banks which are desirous of acting as SCSBs for ASBA facility w.e.f. January 1, 2010, are required to submit to SEBI a certificate as per the format provided hereunder. Upon receipt of this certificate, the bank’s name shall be included by SEBI in the list of eligible SCSBs who can accept application from investors w.e.f. January 1, 2010.

Format of certificate to be submitted by SCSBs

“(i) We, ___________, hold a valid certificate of registration as a Banker to an Issue under

the SEBI (Bankers to an Issue) Regulations, 1994. Our SEBI registration number___________ is

valid up to____________ .

(ii) We have an arrangement with at least one of the stock exchange(s) that provide the electronic bidding system, through a web enabled interface, for uploading details of ASBA (hereinafter referred to as “the Stock Exchange(s)”).

(iii) We have undertaken the mock trial run of our systems for ASBA Phase II, with the Stock Exchange(s) and Registrar(s) and have satisfied ourselves that we have adequate systems! infrastructure in place at our Controlling Branch! Designated Branches to fulfill our responsibilities! obligations as envisaged in the ASBA facility within the timelines specified therein. These responsibilities! obligations, inter‐alia, include:

a. Collection of physical and! or electronic ASBA from the ASBA investors.

b. Capturing relevant details from the physical and! or electronic ASBA.

c. Blocking funds to the extent of application money in the bank account specified in the ASBA till finalisation of the basis of allotment or withdrawal! failure of the issue or withdrawal! rejection of the application, as the case may be. Uploading details of the ASBA in the electronic bidding system of the Stock Exchange(s), sending to and receiving from the Registrar(s) data pertaining to the ASBA and the issue, in a secured form.

d. Ensuring that there is a proper segregation of applications! amount! data issue‐ wise in respect of various issues that may be open simultaneously.

e. Unblocking funds in the bank account specified in the ASBA upon receipt of request from Registrar(s) and releasing the funds in favour of the issuer or unblocking of funds on withdrawal! rejection of the ASBA, and

f. Unblocking funds in the bank account specified in the ASBA upon receipt of information on withdrawal! failure of the issue from the post issue merchant bankers through Registrar to an issue.

(iv) We have systems in place to ensure that the amount blocked by us in the bank account specified in the ASBA shall be available at all times, for the purpose of giving it to the issuer upon finalisation of the basis of allotment.

(v) We are responsible for any omission or commission on our part while discharging our role as envisaged in the ASBA facility.

(vi) We have systems in place to satisfactorily redress complaints arising out of errors or delays on our part to capture data, block or release funds, etc.

(vii) We have identified our Controlling Branch and Designated Branch(es), the names and contact details of which are enclosed herewith.

(viii) We have identified the following official of our bank as the nodal officer for the purpose of ASBA facility:

Name:_________

Designation:____

Branch:________

Address:_______
Phone number(s):

Fax Number:____
E‐mail ID:

(ix) We undertake to inform changes, if any, in the aforesaid details furnished to SEBI, on as and when basis.

I, on behalf of, hereby confirm that we fulfil / undertake to fulfil all the conditions stated above for becoming a SCSB.

Name and Signature of Authorised official of the Bank

Annexure II DETAILS OF APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA) FACILITY

The ASBA facility is presented in a tabular form as under:

Sr. No. Details of ASBA facility Timeline/ Due date
1. An ASBA investor, intending to subscribe to a public, shall submit a completed ASBA form1 to a Self Certified Syndicate Bank (SCSB), with whom the bank account to be blocked, is maintained, through one of the following modes ‐

(i) Submit the form physically with the Designated Branches (DBs) of
the SCSB (“Physical ASBA”);

or

(ii) Submit the form electronically through the internet banking
facility offered by the SCSB (“Electronic ASBA”).

Bidding!
offer period
2. The SCSB shall give an acknowledgement by giving the counter foil or specifying the application number to the ASBA investor, as a proof of having accepted his! her ASBA, in a physical or electronic mode respectively. Bidding!
offer period
3. If the bank account specified in the ASBA does not have sufficient credit balance to meet the application money, the ASBA shall be rejected by the SCSB. Bidding!
offer period
4. (i) After accepting a Physical ASBA, the SCSB shall block funds available in the bank account specified in the Physical ASBA, to the extent of the application money specified in the ASBA. The SCSB shall then capture and upload the relevant details in the electronic bidding system as specified by the Stock Exchange(s) for a particular issue.

(ii) In case of an Electronic ASBA, the ASBA investor himself! herself shall fill in all the relevant details, except the application number which shall be system generated. The SCSB shall thereafter upload all the details specified by the Stock Exchange(s).

Bidding!
offer period
5. The SCSB (Controlling Branch (CB) or DBs) shall provide Transaction Registration Slip(s)! Order number(s), confirming upload of ASBA Bidding!
offer period

1 Main contents of ASBA Application for public issues are given in Annexure IIA.

details in the electronic bidding system of the Stock Exchange. The Transaction Registration Slip(s)! Order number(s) shall be provided to the ASBA investor as a proof of uploading the details of ASBA, only on demand.
6. In case an ASBA investor wants to withdraw his! her ASBA during the bidding! offer period, he! she shall submit his! her withdrawal request to the SCSB, which shall do the necessary, including deletion of details of the withdrawn ASBA from the electronic bidding system of the Stock Exchange(s) and unblocking of funds in the relevant bank account. Bidding!
offer period
7. The Stock Exchange(s) shall make available the updated electronic bid file to the Registrar to the Issue. Bidding!
offer period
8. The SCSB shall send investor category –wise the following aggregate information as per the format specified by the registrar to the issue, to the Registrar to the Issue after closure of the bidding period:

(i) Total number of ASBAs uploaded by the SCSB

(ii) Total number of shares and total amount blocked against the uploaded ASBAs.

T+1
(where T
stands for
closing date
of the
bidding!
offer period)
9. The Registrar to the Issue shall reconcile the compiled data received from the Stock Exchange(s) (as explained in serial number 7 above) and all SCSBs (as explained in serial number 8 above) (hereinafter referred to as the “reconciled data”). TtoT+11
10. The Registrar to the Issue shall then match the reconciled data with the depository’s database for correctness of DP ID, Client ID and PAN. In case any DP ID, Client ID or PAN mentioned in the bid file for ASBAs does not match with the one available in the depository’s database, such ASBA shall be rejected by the Registrar.
11. The Registrar to the Issue shall inform each SCSB about errors, if any, in the bid details, along with an advice to send the rectified data within the time as specified by the Registrar.
12. In case an ASBA investor wants to withdraw his!her ASBA after the bid closing date, he! she shall submit the withdrawal request to the Registrar to the Issue. The Registrar shall delete the withdrawn bid from the bid file.

 

13. The Registrar to the Issue shall reject multiple ASBAs determined as such, based on common PAN.
14. The Registrar to the Issue shall finalise the basis of allotment and submit it to the Designated Stock Exchange for approval. T+12
15. Once the basis of allotment is approved by the Designated Stock Exchange, the Registrar to the Issue shall provide the following details to the CB of each SCSB, along with instructions to unblock the relevant bank accounts and transfer the requisite money to the issuer’s account designated for this purpose, within the timelines specified in the ASBA facility:

(i) Number of shares to be allotted against each valid ASBA

(ii) Amount to be transferred from the relevant bank account to the

issuer’s account designated for this purpose, for each valid ASBA

(iii) The date by which the funds referred to in sub‐para (ii) above,

shall be transferred to the issuer’s account designated for this

purpose.

(iv) Details of rejected ASBAs, if any, along with reasons for rejection and details of withdrawn! unsuccessful ASBAs, if any, to enable SCSBs to unblock the respective bank accounts.

T+13
16. SCSBs shall unblock the relevant bank accounts for:

(i) Transfer of requisite money to the issuer’s account designated for this purpose against each valid ASBA.

(ii) Withdrawn! rejected! unsuccessful ASBAs.

The CB of each SCSB shall confirm the transfer of requisite money against each successful ASBA to the Registrar to the Issue.

T+14
17. The Issuer shall make the allotment. T+15
18. The Registrar to the Issue shall credit the shares to the demat account of the successful ASBA investors. T+15

MAIN CONTENTS OF “APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA)” FORM FOR

PUBLIC ISSUES

1. A statement that ASBA can be used only by an “ASBA investor”, i.e., all investors other than QIBs.

2. Details of ASBA investor:

(i) Name (only first applicant’s name)

(ii) PAN

(iii) Bidder’s depository account details

(iv) Details of multiple bids (in case of book built issue)

a. Number of equity shares for each bid

b. Bid rate for each bid.

3. Bank Account Number of the account with the SCSB, in which funds to the extent of application money shall be blocked.

4. The following confirmations/ declarations from the ASBA investor:

(i) That he! she is an ASBA investor as per the applicable provisions of the SEBI (Iissue of Capital and Disclosure Requirements) Regulations, 2009.

(ii) That in accordance with the ASBA facility provided in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and as disclosed in the Red Herring Prospectus, the ASBA investor has –

a. authorised the SCSB to do all acts as are necessary to make an application in the issue of the company, including uploading of his! her bid, blocking or unblocking of funds in the bank account maintained with the SCSB specified in the ASBA, transfer of funds to the issuer’s account designated for this purpose on receipt of instruction from the Registrar to the Issue after finalisation of the basis of allotment entitling the ASBA investor to receive shares on such transfer of funds, etc.;

b. authorised the Registrar to the Issue to issue instructions to the SCSB to remove the block on the funds in the bank account specified in the ASBA, upon finalisation of the basis of allotment and to transfer the requisite money to the issuer’s account designated for this purpose.

(iii) In case the amount available in the bank account specified in the ASBA is insufficient for blocking the amount equivalent to the application money, the SCSB shall reject the application.

(iv) If the DP ID, Client ID or PAN furnished by the ASBA investor in his/ her ASBA form is incorrect or incomplete, the ASBA shall be rejected and the Issuer or SCSB shall not be liable for losses, if any.

5. Provision for acknowledgment of receipt of ASBA.

6. Provision for signature of the applicant and of the account holder, if the account holder is different from the applicant.

7. ASBA investors have the right to revise the bid. Suitable provisions in this regard may be provided in the form.

ROLE AND RESPONSIBILITIES OF INTERMEDIARIES

(I) Role and Responsibilities of Self Certified Syndicate Bank (SCSBs) Role and responsibilities of SCSBs shall include the following:

1. SCSB shall designate one branch as the Controlling Branch, which shall be the single point interface for the Registrar to the Issue, Stock Exchange(s) and merchant bankers, for co‐ordination! communication.

2. SCSB shall identify Designated Branches at which Physical Application Supported by Blocked Amount (Physical ASBA) can be submitted by ASBA investor.

3. SCSB shall ensure that a soft copy of the abridged prospectus of the relevant public issue is made available on its website, along with the Electronic ASBA, so as to enable an ASBA investor to confirm that he! she has read and understood the terms and conditions of the abridged prospectus, before applying in the issue.

4. SCSB shall comply with the instruction given by the Stock Exchanges with regard to ASBA Phase II which inter‐alia include instructions like (i) not accepting more than five applications per account per issue (ii) not to accept any ASBA after the specified closing time on the last day of the bidding period, (iii) blocking the highest of the bid amount, in case there are more than one bid in ASBA.

5. SCSB shall give ASBA investors an acknowledgement for the receipt of ASBAs.

6. SCSB shall not upload any ASBA in the electronic bidding system of the Stock Exchange(s) unless –

(i) it has received the ASBA in a physical or electronic form; and

(ii) it has blocked the application money in the bank account specified in the ASBA or has systems to ensure that Electronic ASBAs are accepted in the system only after blocking of the adequate application money in the relevant bank account opened with it.

7. SCSB shall ensure that the details of a particular ASBA are uploaded only once in the electronic bidding system of any one of the Stock Exchanges. SCSB shall be solely responsible for the completion and accuracy of all details entered! uploaded on the electronic bidding system of the Stock Exchange(s).

8. In case of withdrawal of bids by ASBA investors during the bidding period, SCSB shall ensure deletion of the withdrawn ASBA from the electronic bidding system of the Stock Exchange(s) and unblocking of funds in the relevant bank account within the timelines specified in the ASBA facility.

9. SCSB shall send the following aggregate information as per the format specified by the registrar to the issue, to the Registrar to the Issue after the closure of the bidding period, within the timelines specified in the ASBA facility:

(i) Total number of ASBAs uploaded by the SCSB; and

(ii) Total number of shares and total amount blocked against the uploaded ASBAs.

10. SCSB shall ensure that the bank accounts specified in the ASBAs are duly blocked to the extent of the application money (including revision in bids, if any) till withdrawal! rejection of the ASBAs or receipt of instruction from the Registrar to the Issue for unblocking the bank accounts for the purpose of transferring the funds to the issuer’s account designated for this purpose within the timelines specified in the ASBA facility. The SCSB shall also ensure that the amount blocked by it in the bank accounts specified in the ASBA form, shall be available at all times for transferring to the issuer’s account designated for this purpose at the time of finalization of allotment.

11. In case of failure or withdrawal of the issue, on receipt of appropriate instruction from the pre‐issue merchant bankers through Registrar to the issues, SCSB shall unblock the bank accounts latest by the next day of receipt of such instruction.

12. In case SCSB receives any information from the Registrar to the Issue regarding errors in bid details, the SCSB shall send the rectified data within the time specified by the Registrar.

13. SCSB shall ensure that information about revision in the bidding period or price band, as and when received, is communicated and effected to in its systems promptly, for information of ASBA investors.

14. SCSB shall take all necessary steps and co‐operate with the Registrar to the Issue, Stock Exchange(s) and merchant bankers in ensuring secured transfer of data and completion of allotment of the equity shares within the time period specified in the Red Herring Prospectus. SCSB shall ensure that information, if any, sought in relation to ASBA facility by the merchant bankers! Registrar to the Issue, is promptly provided.

15. SCSB shall retain Physical ASBAs for a period of six months and thereafter forward the same to the issuer. However, in case of Electronic ASBAs, “printouts” of such applications need not be retained or sent to the issuer. SCSB shall, at all times, maintain the electronic records relating to ASBA facility for a minimum period of three years.

16. SCSB shall ensure that complaints of ASBA investors arising out of errors or delay in capturing of data, blocking or unblocking of bank accounts, etc. are satisfactorily redressed.

17. SCSB shall be liable for all its omissions and commissions in discharging its responsibilities in the ASBA facility.

(II) Role and Responsibilities of Registrar to the Issue Role and responsibilities of Registrar to the Issue shall include the following:

1. Registrar to the Issue shall obtain the electronic bid data (including the Application Supported by Blocked Amount (ASBA) bid data) from the Stock Exchange(s) and match the DP ID, Client ID and PAN specified in the electronic bid file with the depository’s database, for the purpose of acceptance of applications and finalisation of the basis of allotment.

2. Registrar to the issue shall intimate before opening of the issue the basis of commission payable to SCSBs, the bid! issue opening and closing date!time, including details of revision in price band! floor price! bidding period, if any to SCSBs.

3. Registrar to the Issue shall inform each Self Certified Syndicate Bank (SCSB) about errors, if any, in the bid details, along with an advice to send the rectified data within a specific date, which shall be specified by the Registrar.

4. Once the basis of allotment is approved by the Designated Stock Exchange, the Registrar to the Issue shall provide the following details to the Controlling Branch (CB) of each SCSB, along with instructions to unblock the relevant bank accounts and transfer the requisite money to the issuer’s account designated for this purpose, within the timelines specified in the ASBA facility:

(i) Number of shares to be allotted against each valid ASBA.

(ii) Amount to be transferred from the relevant bank account to the issuer’s account, for each valid ASBA.

(iii) The date by which the funds referred in sub‐para (ii) above, shall be transferred to the issuer’s account designated for this purpose.

(iv) Details of rejected ASBAs, if any, along with reasons for rejection and details of withdrawn! unsuccessful ASBAs, if any, to enable SCSBs to unblock the respective bank accounts.

5. The Registrar to the Issue shall be responsible for the correctness and validity of the information furnished by it to SCSBs and shall be liable for all its omissions and commissions in discharging its responsibilities in the ASBA facility.

6. Unless otherwise specified in the regulations! circulars for ASBA facility, Registrar to the Issue shall ensure that uniform procedure is followed for ASBA and non-ASBA.

7. Registrar to the Issue shall act as a nodal agency for redressing complaints of ASBA and non-ASBA investors, including providing guidance to ASBA investors regarding approaching the SCSB concerned.

8. Registrar to the Issue shall maintain accurately, at all times, the electronic records
relating to ASBAs received from all SCSBs, including the following:

(i) ASBAs taken from the electronic bidding system of the Stock Exchange(s) and ASBAs furnished by SCSBs in respect of the issue;

(ii) particulars relating to allotment of equity shares against valid ASBAs;

(iii) particulars relating to the requisite money to be transferred to the issuer’s account against valid ASBAs; and

(iv) Details of rejected! withdrawn! unsuccessful ASBAs, if any.

(III) Role and Responsibilities of Merchant Bankers Role and responsibilities of Merchant Bankers shall include the following:

1. The pre-issue merchant banker(s) shall ensure that the ASBA facility is provided as one of the modes of accepting bid-cum-application forms in all Initial public issues with single payment option.

2. The pre-issue merchant banker(s) shall ensure that appropriate disclosures! instructions are given regarding the ASBA facility in the Red Herring Prospectus and abridged prospectus and in application forms, to enable investors to understand and apply

through the ASBA facility.

3. The pre-issue merchant banker(s) shall ensure that sufficient number of Physical ASBA forms are printed and are made available to all SCSBs. Further, it shall ensure that SCSBs are also provided with a soft copy of the abridged prospectus! prospectus.

4. The pre-issue merchant banker(s) shall intimate before opening of the issue the basis of commission payable to SCSBs, the bid! issue opening and closing date! time, including details of revision in price band! floor price! bidding period, if any to SCSBs through Registrar to Issues.

5. In case of failure! withdrawal of the issue, the pre-issue merchant banker(s) shall inform
SCSBs through Registrar to Issues regarding the same.

6. The post‐issue merchant banker(s) shall inform the Registrar to the Issue, the date by which subscription money shall be transferred to the issuer’s account designated for this purpose, by SCSBs.

7. The pre and post issue merchant banker(s) shall co‐ordinate with the Registrar to the Issue for providing appropriate information! instructions to the SCSBs in respect of the ASBA facility.

8. Unless otherwise specified in the regulations ! circulars for ASBA facility, the pre and post issue merchant banker(s) shall ensure that all intermediaries follow uniform procedure for ASBA and non‐ASBA forms.

9. Discount, if any, to the specified category of investors shall be adjusted on allotment and at the time on unblocking the amount from the investors’ bank account.

(IV) Role and Responsibilities of the Stock Exchange(s) Role and responsibilities of the Stock Exchanges shall include the following:

1. The Stock Exchanges shall provide file format! layout in which upload!download shall be made by the various intermediaries interacting with the stock exchanges or amongst thems.

2. The Stock Exchange(s) shall ensure that details of the Controlling Branch (CB) and Designated Branches (DBs) of each SCSB are available on the website of the Stock Exchange(s) in an easily accessible form.

3. The Stock Exchange(s) shall enable:

(i) access to their electronic bidding system through a web enabled interface, to SCSBs, for uploading details of ASBA;

(ii) SCSBs to upload data on the electronic bidding system in a secured way; and

(iii) identification of data uploaded by each SCSB, DB‐wise.

4. The Stock Exchange(s) shall ensure that the electronic bidding system provides all the appropriate fields, along with identification of SCSBs, to enable SCSBs to upload the bid data properly. The electronic bidding system shall also be enabled to display bid opening! closing date, price band and revision in price band! bid period and to reset relevant data fields upon revision, if any.

5. The Stock Exchange(s) shall ensure that an issue specific code is generated from the electronic  bidding system, so that SCSBs does not face any problem in segregating the ASBA issue‐wise.

6. The Stock Exchange(s) shall be responsible for accurate, timely and secured transmission of the electronic bid file uploaded by SCSBs, to the Registrar to the Issue.

7. The Stock Exchange(s) shall provide a facility of reverse confirmation to SCSBs regarding the data having been uploaded on their electronic bidding system.

8. In case of withdrawal of ASBA during the bidding period, the Stock Exchange(s) shall provide the facility to enable SCSBs to –

(i) delete the ASBA from the electronic bidding system or mark the withdrawal individually against the original bid uploaded; or

(ii) upload withdrawal of the ASBA in batch mode, in the electronic bidding system.

sebi press_logo Circular

More Under SEBI

Posted Under

Category : SEBI (2834)
Type : Circulars (7676) Notifications/Circulars (31380)
Tags : SEBI notifications (2186)

Leave a Reply

Your email address will not be published. Required fields are marked *