TMI BlogAdditional mode of payment through Applications Supported by Blocked Amount (hereinafter referred to as “ASBA”)- Merchant BankersX X X X Extracts X X X X X X X X Extracts X X X X ..... rein cheque is used as a mode of payment. 3. The main features of ASBA process are as follows: a. Meaning of ASBA: ASBA is an application for subscribing to an issue, containing an authorisation to block the application money in a bank account. b. Self Certified Syndicate Bank SCSB): SCSB is a bank which offers the facility of applying through the ASBA process. A bank desirous of offering ASBA facility shall submit a certificate to SEBI as per the format given in Annexure II, as per the specified format, for inclusion of its name in SEBI s list of SCSBs. The said list will be displayed by SEBI on its website at www.sebi.gov.in. ASBAs can be accepted only by SCSBs, whose names appear in the list of SCSBs displayed in SEBI s website. On inclusion in the list of SCSBs, a bank shall commence its activities as an SCSB w.e.f. the 1st or 15th of a month, whichever is earlier, from the date of such inclusion. 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 process is applicable. A SCSB shall identify its Designated Branches (DBs) at which an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withdrawal/ failure of the issue, the amount shall be unblocked by the SCSB on receipt of information from the pre-issue merchant bankers. The ASBA process is given in detail in Annexure III. 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 these applications similar to non-ASBA applications while finalizing the basis of allotment, as per the procedure specified in the Guidelines. f. Applicability of ASBA process: ASBA process shall be applicable to all book-built public issues which provide for not more than one payment option to the retail individual investors. 4. The details of the role and responsibilities of Merchant Bankers in the ASBA process are given in Annexure IV , for due compliance by Merchant Bankers. 5. The roles and responsibilities of other intermediaries, viz., Registrars, Merchant Bankers and Stock Exchanges in the ASBA process are given in Annexure V . 6. This circular shall come in to effect from the date to be specified by SEBI, once few eligible banks are recognized as SCSBs. 7. This circular and the entire text ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in all book built public issues which provide for not more than one payment option to the retail individual investors. 7. In clause 5.4.3.1, the words being appointed occurring after the word intermediaries and before the word are duly shall be deleted. 8. In clause 5.4.3.1.1, the following proviso shall be inserted, namely: Provided that nothing contained in this clause shall apply in case of Self Certified Syndicate Bank. 9. In clause 5.4.3.1.2, in the end, the words and also take note of the deemed agreement with the Self Certified Syndicate Banks as provided in the Application Supported by Blocked Amount process shall be inserted. 10. In clause 5.7.1, after the words and comma investors associations, and before the word etc. , the words Self Certified Syndicate Banks shall be inserted. 11. After clause 5.9.2, the following clause shall be inserted, namely: 5.9.3 In addition to the provisions of clause 5.9.1 and 5.9.2 above, in respect of issues where Application Supported by Blocked Amount process is applicable, all designated branches of Self Certified Syndicate Banks shall be deemed to be mandatory collection centres. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nserted. 23. In clause 6.19.2, in sub clause (e), sub clause (ii), after the words application form and before the words for inserting , the words other than Applications Supported by Blocked Amount shall be inserted. 24. In clause 6.19.2, in sub clause (e), after the sub clause (ii), the following sub clause shall be inserted: (iia) Provision in the Application form for Applications Supported by Blocked Amount, for inserting particulars relating to bank account number which is authorised to be blocked and other particulars as specified by SEBI in this regard. CHAPTER VII POST ISSUE OBLIGATIONS 25. Clause 7.3.1, shall be substituted with the following, namely: 7.3.1 The Post Issue Lead Merchant Banker shall actively associate himself with post issue activities namely, allotment, refund, despatch and giving instructions to Self Certified Syndicate Banks and shall regularly monitor redressal of investor grievances arising therefrom 26. In clause 7.4.1(i), after the word branches, and before the word processing , the words and the comma Self Certified Syndicate Banks, shall be inserted. 27. In clause 7.4.1(i), the words those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (vii)(c), the following sub clause shall be inserted, namely: (vii)(cc) In case of Applications Supported by Blocked Amount, the Self Certified Syndicate Banks shall follow the procedure specified by the Board in this regard. 34. In clause 11.3.1, in sub clause (vii)(d), after the word and mark broker s and before the words and mark commission fee , the mark and words /Self Certified Syndicate Banks shall be inserted. 35. In clause 11.3.1, in sub clause (xiv), after the words syndicate members , the words and Self Certified Syndicate Banks . shall be inserted. 36. In clause 11.3.1, in sub clause (xvii)(a), after the words syndicate members and before the comma and words , for each such category , the mark and words /Self Certified Syndicate Banks shall be inserted. 37. Clause 11.3.1, sub clause (xx), shall be substituted with the following sub clause, namely: (xx) Arrangement shall be made by the issuer for collection of the applications from mandatory collection centres as provided in clause 5.9 of the Guidelines. 38. In clause 11.3.1, sub clause (xx)(a), after the word infrastructure and before the words for data entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Certified Syndicate Banks for redressal of their grievances shall be inserted. 47. In clause 16.2.4.2, for sub clause (b), the following shall be substituted, namely: (b) Satisfactory redressal of all complaints regarding all applications in the issue including Applications Supported by Blocked Amount received at the Board against the Company as cofirmed by the Registrar. 48. In clause 16.2.4.2, for sub clause (c), the following shall be substituted, namely: (c) Certificate from the Designated Stock Exchange to the issuer company to the effect that underwriting/brokerage commission as well as fees of Registrars/Lead merchant bankers/Self Certified Syndicate Banks have been duly paid by the company. 49. In clause 16.2.4.5, in sub clause (a), after the word fees and before the words may be filed , the mark and words /Self Certified Syndicate Banks shall be inserted. SCHEDULE I (Clause 5.3.1.2) MEMORANDUM OF UNDERSTANDING BETWEEN THE LEAD MERCHANT BANKER TO THE ISSUE AND THE ISSUER COMPANY 50. In Schedule I, in Para 8, after the word intermediaries and before the words or other persons , the words (except Self Certified Syndica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 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 process 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the internet banking facility offered by the SCSB ( ElectronicASBA ). Bidding period 2. The SCSB shall give an acknowledgement specifying the application number to the ASBA investor, as a proof of having accepted his her ASBA in a physical or electronic mode. Bidding 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 period 4. A. B. 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 upload the following details in the electronic bidding system provided by the Stock Exchange(s) for the particular public issue: (i) Application number (ii) DP ID Client ID (iii) Bid Quantity (iv) PAN In case of an Electronic ASBA, the ASBA investor himself herself shall fill in all the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 within the timelines specified in the ASBA process: (i) Number of shares to be allotted against each valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing confirmations/ declarations from the ASBA investor: (i) That he she is an ASBA investor as per the applicable provisions of the SEBI (Disclosure and Investor Protection) Guidelines, 2000. (ii) That in accordance with the ASBA process provided in the SEBI (Disclosure and Investor Protection) Guidelines, 2000 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 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. (iii) In case the amount available in the bank account specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Responsibilities of Self Certified Syndicate Banks (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. An SCSB giving the facility of Electronic ASBA 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 not accept any ASBA after the closing time of acceptance of bids on the last day of the bidding period. 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promptly, for information of ASBA investors. 13. 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 process by the merchant bankers Registrar to the Issue, is promptly given. 14. 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 process for a minimum period of three years. 15. 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. 16. SCSB shall be liable for all its omissions and commissions in discharging its responsibilities in the ASBA process. (II) Role and Responsibilities of Registrar to the Is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 the Stock Exchange(s) Role and responsibilities of the Stock Exchanges shall include the following: 1. The Stock Exchange(s) shall ensure that details of the Controlling Branch and Designated Branches (DBs) of each SCSB are available on the website of the Stock Exchange(s) in an easily accessible form. 2. 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. 3. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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