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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 ..... g 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) which shall act as a coordinating branch for the Registrar to the Issue, Stock Exchanges and Merchant Banke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 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 www.sebi.gov.in under the categories "Legal Framework" and "Issues and Listing". Yours faithfully, Neelam Bhardwaj Encl.: Annexure I - Certification by Self Certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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: Name: _______________________ Designation: __________________ Branch: ______________________ Address: _____________________ Phone number(s): ______________ Fax Number: __________________ E-mail ID: _____________________ I, on behalf of ____________, hereby confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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. Bidding period 8. The SCSB shall send the following aggregate information to the Registrar to the Issue after closure of the bidding period: * Total number of ASBAs uploaded by the SCSB * Total number of shares and total amount blocked against the uploaded ASBAs. T+1 (where T stands for closing date of the bidding period) 9. The Registrar to the Issue shall reconcile the compiled data received from the Stock Exchange(s) (as explained in para 7 above) and all SCSBs (as explained in para 8 above) (hereinafter referred to as the "reconciled data"). T to T+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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h blocking of funds in a bank account with the Self Certified Syndicate Bank (SCSB); (iv) has agreed not to revise his/her bid; (v) is not bidding under any of the reserved categories. 2. Details of ASBA investor: (i) Name (ii) PAN (iii) Bidder's depository account details (iv) Details of bids - a. Number of equity shares bid for b. Bid payment amount at cut off. 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 (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASBAs are accepted in the system only after blocking of application money in the relevant bank account opened with it. 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 Exchange(s). 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). 7. 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 process. 8. SCSB shall send the following aggregate information to the Registrar to the Issuer after the closure of the bidding period, within the timelines specified in the ASBA process: (i) Total number of ASBAs uploaded by the SCSB; and (ii) Total number of shares and total amount blocked against the uploaded ASBAs. 9. SCSB shall ensure that the bank accounts specified in the ASBAs are duly blocked to the extent of the application money till withdrawal/ rejection of the ASBA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication 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 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. 3. 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 within the timelines specified in the ASBA process: (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. (iv) Details of rejected ASBAs, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue, the pre-issue merchant banker(s) shall inform SCSBs 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 by SCSBs. 7. The post-issue merchant banker(s) shall co-ordinate with the Registrar to the Issue for providing appropriate information/ instructions to each SCSB in respect of the ASBA process. 8. Unless otherwise specified in the guidelines/ circulars for ASBA process, the pre and post issue merchant banker(s) shall ensure that all intermediaries follow uniform procedure for ASBA and non-ASBA forms. (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 bi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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