TMI BlogCircular on Applications Supported by Blocked Amount - Bankers to an IssueX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 I, 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 ASBA investor shall submit ASBA and shall also identify the Controlling Branch (CB) wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the SCSB on receipt of information from the pre-issue merchant bankers. The ASBA process is given in detail in Annexure II . 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 SCSBs in the ASBA process are given in Annexure III, for due compliance by SCSBs. 5. The roles and responsibilities of other intermediaries, viz., Registrars, Merchant Banker(s) and Stock Exchanges in the ASBA process are given in Annexure IV. 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 of the amended SEBI (DIP) Guidelines are available on SEBI website at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at may be open simultaneously. e. Unblocking funds in the bank account specified in the ASBA upon receipt of request from Registrar(s) or on withdrawal/ rejection of the ASBA, and releasing the funds in favour of the issuer. 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. (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 process. (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 process: Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which shall be system generated. The SCSB shall thereafter upload all the abovementioned details in the electronic bidding system provided by the Stock Exchange(s). Bidding period 5. The SCSB (Controlling Branch (CB) or DBs) shall generate a Transaction Registration Slip/ Order number, confirming upload of ASBA details in the electronic bidding system of the Stock Exchange(s). The Transaction Registration Slip/ Order number shall be given to the ASBA investor as a proof of uploading the details of ASBA, only on demand. Bidding period 6. In case an ASBA investor wants to withdraw his/ her ASBA during the bidding 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 period 7. The Stock Exchange(s) shall make available the updated electronic bid file to the Registrar to the Issue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suer s account, 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 (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 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 Annexure IIA MAIN CONTENTS OF APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA) FORM 1. A statement that ASBA can be used only by an ASBA inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of the applicant and of the account holder, if the account holder is different from the applicant. Annexure III 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. 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 rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. 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. (II) 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 process is provided as one of the modes of accepting bid-cum-application forms in all book built issues which provide for not more than one payment option to the retail individual investors. 2. The pre-issue merchant banker(s) shall ensure that appropriate disclosures are made regarding the ASBA process in the Red Herring Prospectus and abridged prospectus, to enable investors to understand and apply thro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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