TMI BlogStreamlining the Process of Public Issue of Equity Shares and convertibles- Extension of time lime for implementation of Phase II of Unified Payments Interface with Application Supported by Blocked AmountX X X X Extracts X X X X X X X X Extracts X X X X ..... with Application Supported by Blocked Amount ( ASBA ) for applications in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants), with effect from January 01, 2019. Implementation of the same was to be carried out in a phased manner to ensure gradual transition to UPI with ASBA . 2. Vide SEBI Circular SEBI /HO/ CFD /DIL2/CIR/P/2019/76 dated June 28, 2019 , Phase II was implemented from July 01, 2019. In Phase II, for applications by retail individual investors through intermediaries, the process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks ( SCSBs ) for blocking of funds was discontinued and only the UPI mechanism with existing timeline of T+6 days was mandated, for a period of 3 months or floating of 5 main board public issues, whichever is later. 3. Since then, two big public issues have used the facility of UPI 2.0, wherein it was seen that the platform has become increasingly acceptable given the number of applications received in ASBA with UPI as a payment mec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Due Date (working day*) 1. An investor, intending to subscribe to a public issue, shall submit a completed bid-cum-application form to any of the following entities: i. an SCSB, with whom the bank account to be blocked, is maintained ii. a syndicate member (or sub-syndicate member) iii. a stock broker registered with a recognised stock exchange (and whose name is mentioned on the website of the stock exchange as eligible for this activity) ( broker ) iv. a depository participant ( DP ) (whose name is mentioned on the website of the stock exchange as eligible for this activity) v. a registrar to an issue and share transfer agent ( RTA ) (whose name is mentioned on the website of the stock exchange as eligible for this activity) Retails investors submitting application with any of the entities at (ii) to (v) above (hereinafter referred as Intermediaries ), have to use UPI and shall also their UPI ID in the bid-cum-application form. Issue opening date to issue closing date where T is issue closing date) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k shall do a reconciliation of bid requests received from exchange(s) and sent to NPCI . Sponsor bank shall ensure that all the bids received from exchange(s) are pushed to NPCI . Step 2: NPCI shall ensure that all the bid requests received from sponsor bank are pushed to the corresponding payment system participants of issuer banks. The issuer banks/sponsor bank shall download the mandate related UPI settlement files and raw data files from NPCI portal on daily basis after every settlement cycle and shall do a three way reconciliation with Banks UPI switch data, CBS data and the UPI raw data. NPCI shall coordinate with issuer banks /sponsor bank on continuous basis. Step 3: The issuer banks shall process all the incoming bid requests from NPCI and shall send the response to NPCI in real time. NPCI shall further facilitate the flow of these responses to sponsor bank. Step 4: Sponsor bank shall do a reconciliation of bid responses received from NPCI and sent to exchange(s). Sponsor bank shall ensure that all the responses received from NPCI are sent to the exchange(s) platform with detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o forward a schedule as per format given below along with the application forms to designated branches of the respective SCSBs for blocking of funds. Field No. Details Field No. Details 1. Symbol 2. Intermediary Code 3. Intermediary Name 4. Bank Code 5. Bank Name 6. Location Code 7. Application No 8. Category 9. PAN 10. DP ID 11. Client ID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide confirmation on the third party applications to the registrar not later than 09:00 pm on T+2. Issuer, merchant banker and registrar to submit relevant documents to the stock exchange(s) except listing application, allotment details and demat credit and refund details for the purpose of listing permission. Registrar shall reconcile the compiled data received from the stock exchange(s), all SCSBs and Sponsor Bank (hereinafter referred to as the reconciled data ). Registrar shall reject multiple applications determined as such, based on common PAN. Registrar to undertake Technical Rejection test based on electronic bid details and prepare list of technical rejection cases. Merchant Banker shall submit a report of compliance with all activities in T+2 to SEBI not later than 10:00 PM. T+2 8. For every bid entered in the exchange(s) bidding platform, the audit trail shall be maintained by NPCI . The liability to compensate the investor in case of failed transactions shall be with the concerned entity in the ASBA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with NPCI and Issuer banks, shall share the data points 4 to 8 mentioned in Annexure B with the Registrar. Registrar shall coordinate with Sponsor Bank/SCSB s and submit a comprehensive report on status of debit/unblock requests of allottees/Non-allottees not later than 08:00 PM as per the format mentioned in Annexure B to Merchant Banker. Merchant Banker shall submit a comprehensive report on status of debit/unblock requests ( Annexure B ) received from the Registrar to SEBI not later than 09:00 PM. T+4 11. Registrar to receive confirmation of demat credit from depositories. Issuer and registrar to file confirmation of demat credit, lock-in and issuance of instructions to unblock ASBA funds, as applicable, with stock exchange(s). Issuer to make a listing application to stock exchange(s) and stock exchange(s) to give listing and trading permission. Issuer, merchant banker and registrar to initiate the process of publishing the allotment advertisement. Stock exchange(s) to issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d BSE NSE Total ** Data to be obtained by merchant banker from registrar/exchange(s) Annexure B S.No. Data Point Count Date of Activity 1. Total No of unique applications received Total Bank ASBA Online UPI 2. Total No of Allottees Total Bank ASBA Online UPI 3. Total No of Non-Allottees ..... X X X X Extracts X X X X X X X X Extracts X X X X
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