TMI BlogStreamlining the process of IPOs with UPI in ASBA and redressal of investor grievancesX X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 extended the timeline for implementation of Phase II. The said circular had prescribed the detailed timelines of T+6 listing, compliance, reconciliation process and reporting standards to be followed by Intermediaries. 4. The intermediaries in the IPO ecosystem have agreed to the standard operating procedure as well as the level of security for all messaging protocols from different nodes. This has addressed a lot of investor issues. 5. Gaining on the experience of the market with the current UPI system, the following issues have been identified based on the consultation with market participants which need to be addressed. a) Delay in receipt of mandate by investors for blocking of funds due to systemic issues at Intermediaries/SCSBs. b) Failure to unblock funds for cancelled/withdrawn/deleted cases in the Stock Exchanges platform. c) Failure to unblock the funds in cases of partial allotment by the next working day from the finalization of basis of allotment (BOA). d) Failure to unblock the funds in cases of non-allotment by BOA+1. e) SCSB blocking multiple amounts for the same UPI application. f) SCSB blocking more amount in the investors account th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanges. SCSB s shall unblock such applications by the closing hours of the bank day and submit the confirmation to Lead Managers and RTA on daily basis, as per the format prescribed in Annexure III. Unblocking of UPI Mandates 13. Vide SEBI circulars SEBI/HO/CFD/DIL2/CIR/P/2018/138 and SEBI/HO/CFD/DCR2/CIR/P/2019/133, SEBI had endeavored that the unblock of applications shall be completed on T+4 (T: Issue Closing Date), which is effectively BOA+1. However, in view of the complaints received pertaining to delayed unblock, the following process shall be implemented by intermediaries. 13.1 Sponsor Banks shall execute the online mandate revoke file for Non-Allottees /Partial Allottees on BOA+1. Subsequently, any pending applications for unblock shall be submitted to RTA, not later than 12:30 PM on BOA+1. 13.2 Subsequently, RTI shall submit the bank-wise pending UPI applications for unblock to SCSB s along with the allotment file, not later than 02:00 PM on BOA+1. The allotment file shall include all applications pertaining to full-allotment/partial-allotment/non-allotment/cancelled/withdrawn/deleted applications etc. 13.3 SCSB s shall ensure that the unblock for n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... block of UPI bids, receiving the confirmation on completion of Unblocks from Sponsor Banks/SCSBs and Annexure IV from RTI/SCSBs. 17. This circular shall come into force for IPOs opening on/after May 01, 2021. The provisions of this circular shall become part of the offer documents, DRHP and RHP. SCSBs/Lead Managers are also advised to resolve all pending issues related to pending unblock applications whether on the SEBI SCORES portal or otherwise using the compensation policy outlined in this Circular. 18. This circular is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992 . 19. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and Issues and Listing . Yours faithfully, Yogita Jadhav General Manager +91-22-26449583 yogitag@sebi.gov.in Annexure I Details of Nodal officers of SCSBs for IPO applications processed through UPI Format of certificate to be submitted by SCSBs (i) We, [Name of the Bank] , hold a valid certificate of registration as a Banker to an Issue under the SEBI (B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve systems in place to satisfactorily redress complaints arising out of errors or delays on our part in processing the IPO applications with UPI , block or release funds, etc. In this regard, we will be governed by SEBI (Issue of Capital Disclosure Requirements) Regulations, 2018 and Circular No. SEBI/HO/CFD/DIL2/CIR/P/2018/22 dated February 15, 2018. (vii) We have identified the following official of our bank as the nodal officer for the purpose of ASBA facility with UPI: Name: __________________________ Designation: _____________________ Department: _____________________ Address:____________________________ Mobile number: __________________ E-mail ID:___________________________ (viii) We have identified the following escalation matrix for the purpose of ASBA facility with UPI: First level escalation Name : _________________________ Designation: _____________________ Department: _____________________ Address:____________________________ Mobile number: __________________ E-mail ID:___________________________ Second level escalation Name : _________________________ Designation: _____________________ Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debited/unblocked Total Amount debited/unblocked Tentative date of debit/unblock - Actual date of debit/unblock. Non-Allotment Name of the IPO Name of the IPO Total shares non-allotted Total shares non-allotted Total Amount to be unblocked Total Amount unblocked Tentative date of unblock - - Actual date of unblock. Annexure III Format of report to be submitted by SCSB(s) with Registrar and Share Transfer Agent Cancelled/Withdrawn/Deleted applications Report of [Name of Issuer/IPO] Bank Name Period of IPO processing Date Total UPI Applications Cancelled/Withdrawn/delet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... _______________ (RTI) for unblocking of funds. We hereby confirm that we have completed the unblocking for non-allottees/partial-allottees/withdrawn/cancelled/deleted UPI applications. We hereby confirm that there are no multiple amounts blocked in investor s account for a unique UPI application. We hereby confirm that the bank has not blocked funds in excess of the application amount in any of the investor s account. We hereby confirm that there are no outstanding UPI applications for which funds are still blocked. (ii) We are responsible for any investor grievances pertaining to blocking/unblocking of funds while discharging our role as envisaged in the ASBA facility with UPI as a payment mechanism . Authorized/Nodal official of the SCSB 1. Name 2. Designation 3. Mobile Number 4. Email Id 5. Contact Address Signature Stamp of the Authorized/Nodal official. Annexure V Compensation Mechanism for Investor Grievances Scenario Compensation Amount Compensation Period Who should compensate the investor? ..... X X X X Extracts X X X X X X X X Extracts X X X X
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