SEBI Circular for ASBA facility

CIRCULARCIR/CFD/DIL/1/2011 April 29, 2011

CLR Note: Application Supported by Blocked Amount(ASBA)  is an applicationcontaining an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application moneyshall be debited from the bank account only if his/her application is selected forallotment after the basis of allotment is finalized, or the issue is withdrawn/failed.

Sub.: Applications Supported by Blocked Amount (ASBA) facility

 

 

1. SEBI has issued circular no. CIR/CFD/DIL/8/2010 dated October 12, 2010,enabling the syndicate / sub-syndicate members to procure ASBA forms (hereinafter referred as Syndicate ASBA) from the investors, upload the bid and other  relevant details of such ASBA  forms in the bidding platform and there after forward the ASBA forms to the SCSBs. SCSBs shall carry out further action for the ASBA forms such as signature verification, blocking of funds and forward the forms to the registrar to the issue.

2. The respective intermediaries shall take note of the following:

a. Bidding Centers: ASBA  facility through syndicate / sub-syndicate  member shall  initially commence with the following bidding centers: 1)Mumbai   2) Chennai  3) Kolkata  4) Delhi  5) Ahmedabad  6) Rajkot  7) Jaipur  8) Bangalore  9) Hyderabad  10)Pune  11) Baroda  12) Surat

The syndicate / sub-syndicate  members  located  in  the  above mentioned centers shall accept ASBA forms. Before accepting these  ASBA forms syndicate / sub-syndicate members shall satisfy themselves that the SCSBs whose  name  has  been filled in the ASBA form has named a branch in that centre to accept ASBA forms.

b. Naming of Branch: All the SCSBs which are providing ASBA facility in any of the above mentioned centers are required to name atleast one branch where  syndicate / sub-syndicate  members can submit the ASBA forms. The format in which SCSBs has to provide to SEBI the details of the branch to accept  ASBA  forms from the syndicate / sub- syndicate member is placed  at Annexure A. This list would be displayed on the website of SEBI.

c. Syndicate ASBA process: An indicative process flow for ASBA through syndicate members vis-à-vis  non-ASBA  is  placed at Annexure B.3. It has been decided that non-retail investors i.e. Qualified Institutional Buyers andNon-Institutional Investors, making application in public/ rights issue shall mandatorily make use of ASBA facility. In this regard, disclosures shall be made inthe offer document such as in issue procedure section as part of payment instructions.

4. Merchant Bankers shall ensure that appropriate disclosures are made in the offerdocument in this regard.

5. All intermediaries are directed to comply with the instructions contained in thiscircular.

6. This circular shall be applicable for Red Herring Prospectus/ Prospectus / Letter ofOffer filed with Registrar of Companies/ Stock Exchanges, as the case may be, onor after May 2, 2011.

7. This circular is issued in exercise of the powers conferred under Section 11 read with Section 11A of the Securities and Exchange Board of India Act, 1992.

8. This circular is available on SEBI website at www.sebi.gov.in under the categoriesLegal Framework and Issues and Listing.

Given below is the link to the Circular and the Annexure attached there to  Circular on ASBA

 

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