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Public issue application to be processed only after monies are blocked in investor's bank account (IANS Impact)

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New Delhi | Tuesday, 2022 2:15:10 AM IST
The ASBA applications in public Issues shall be processed only after the application monies are blocked in the investor's bank accounts, markets regulator announced on Monday.

Accordingly, all intermediaries and market infrastructure institutions are advised to ensure that appropriate systemic and procedural arrangements are made within three months from the date of issuance of this circular, SEBI said.

Stock Exchanges shall accept the ASBA applications in their electronic book building platform only with a mandatory confirmation on the application monies blocked.

The circular shall be applicable for all categories of investors viz Retail, QIB, NII and other reserved categories and also for all modes through which the applications are processed.

All stakeholders involved in the process are advised to take necessary steps to ensure compliance with this circular. Merchant Bankers shall coordinate with all stakeholders in this regard. This circular shall be applicable for public issues opening on or after September 1, 2022, SEBI said.

The processing of ASBA applications in the Public Issues by market intermediaries and SCSBs has been reviewed. As a part of the continuing efforts to further streamline the bidding process and to ensure the orderly development of securities market, a need has been felt to implement the ASBA process in line with the aforementioned circulars.

The SEBI has prescribed the facility of Application Supported by Blocked Amount (ASBA) in Public Issues for all categories of investors except Qualified Institutional Buyers (QIBs).

The SEBI has extended the facility of ASBA to QIBs in public issues opening on or after May 1, 2010.

--IANS san/skp/

( 279 Words)

2022-05-30-20:28:02 (IANS)

 
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