SEBI via a circular dated 30 December 2009, has prescribed the facility of Application Supported by Blocked Amount (ASBA) in Public Issues for all categories of investors except Qualified Institutional Buyers (QIBs). Via a circular dated 06 April 2010, SEBI has extended the facility of ASBA to QIBs in public issues opening on or after 01 May 2010.SEBI via a circular dated 01 November 2018, introduced the Unified Payment Interface (UPI) as an additional payment mechanism with ASBA for Retail Individual Investors and the same was mandated w.e.f 01 July 2019.
The processing of ASBA applications in the Public Issues by market intermediaries and SCSBs has been reviewed. To streamline the bidding process and ensure the orderly development of the securities market, a need has been felt to implement the ASBA process in line with the aforementioned circulars. The ASBA applications in Public Issues shall be processed only after the application monies are blocked in the investor’s bank accounts. Accordingly, all intermediaries /market infrastructure institutions are advised to ensure that appropriate systemic and procedural arrangements are made within three months from the date of issuance of this circular. Stock Exchanges shall accept the ASBA applications in their electronic book building platform only with a mandatory confirmation on the application monies blocked. The circular shall be applicable for all categories of investors viz. Retail, QIB, NII and other reserved categories and also for all modes through which the applications are processed. This circular shall be applicable for public issues opening on or after 01 September 2022.
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For further information, please contact:
Vandana Joglekar, Clasis Law
Vandanaj@sebi.gov.in
