TaxTMI 
TaxTMI 
Additional mode of payment through Applications Supported by Blocked Amount (hereinafter referred to as “ASBA”)- Merchant Bankers
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....rent process, wherein cheque is used as a mode of payment. 3. The main features of ASBA process are as follows: a. Meaning of ASBA: ASBA is an application for subscribing 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 II, as per the specified format, 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 D....
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....elevant bank accounts and for transferring the requisite amount to the issuer's account. In case of withdrawal/ failure of the issue, the amount shall be unblocked by the SCSB on receipt of information from the pre-issue merchant bankers. The ASBA process is given in detail in Annexure III. e. Obligations 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 Merchant Bankers in the ASBA process are given in Annexure IV, for due compliance by Merchant Bankers. 5. The roles and responsibilities of other intermediaries, viz., Registrars, Merchant Bankers and Stock Exchanges in the ASBA process are given in Annexure V. 6. This circular shall come in to effect from the date to be specifi....
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....as such by the Board" 5. In clause 1.2.1, sub−clause (xxvi−a) shall be re−numbered as "(xxvi−aa)". CHAPTER V PRE-ISSUE OBLIGATIONS 6. After clause 5.2, the following clause shall be inserted namely:− "5.2.1 The lead merchant banker shall ensure that facility of Applications Supported by Blocked Amount is provided in all book built public issues which provide for not more than one payment option to the retail individual investors." 7. In clause 5.4.3.1, the words "being appointed" occurring after the word "intermediaries and before the word "are duly" shall be deleted. 8. In clause 5.4.3.1.1, the following proviso shall be inserted, namely:− "Provided that nothing contained in this clause shall apply in case of Self Certified Syndicate Bank." 9. In clause 5.4.3.1.2, in the end, the words "and also take note of the deemed agreement with the Self Certified Syndicate Banks as provided in the Application Supported by Blocked Amount process" shall be inserted. 10. In clause 5.7.1, after the words and comma "investors associations," and befo....
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....inserted, namely:− "(viii) that adequate arrangements shall be made to collect all Applications Supported by Blocked Amount (ASBA) and to consider them similar to non−ASBA applications while finalizing the basis of allotment." 21. Clause 6.17.9 shall be substituted with the following: "6.17.9 Name and address of the collecting bankers and/or Designated Branches of Self Certified Syndicate Banks." 22. In clause 6.19.1, in sub−clause (ii), after the words "Refund orders" and before the words "in case of public issues", the words, mark and comma "/instruction to Self Certified Syndicate Banks by the Registrar," shall be inserted. 23. In clause 6.19.2, in sub−clause (e), sub−clause (ii), after the words "application form" and before the words "for inserting", the words "other than Applications Supported by Blocked Amount" shall be inserted. 24. In clause 6.19.2, in sub−clause (e), after the sub−clause (ii), the following sub−clause shall be inserted: "(iia) Provision in the Application form for Applications Supported by Blocked Amount, for inserting particulars relating ....
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....of despatch of certificates and date of filing of listing application." CHAPTER XI GUIDELINES ON BOOK BUILDING 30. In clause 11.2(xx) (a), after the word "infrastructure" and before the words "for the data entry of bids", the words "with syndicate member(s)" shall be inserted. 31. In clause 11.3.1, after sub−clause (vii) (a), the following proviso shall be inserted, namely:− "Provided that in case of Application Supported by Blocked Amount, Self Certified Syndicate Banks shall accept and upload details of such applications in electronic bidding system of the stock exchanges." 32. In clause 11.3.1, in sub−clause (vii)(b), the comma and the words ",so appointed" shall be substituted with the words "and Self Certified Syndicate Banks". 33. In clause 11.3.1, after sub−clause (vii)(c), the following sub−clause shall be inserted, namely:− "(vii)(cc) In case of Applications Supported by Blocked Amount, the Self Certified Syndicate Banks shall follow the procedure specified by the Board in this regard." 34. In clause 11.3.1, in sub−clause (vii)(d), after the word....
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...., in sub−clause (vii), the following proviso shall be inserted, namely:− "Provided that ASBA investors shall not have the right to revise their bids." 44. In clause 11.3.4.1, in sub−clause (viii), after sub−clause (e), the following sub−clause shall be inserted, namely: "(f) The bidding form for Applications Supported by Blocked Amount shall contain details as specified by the Board and shall be uniform for all ASBA investors." CHAPTER XVI OPERATIONAL GUIDELINES 45. Clause 16.1.7(a) shall be substituted with the following, namely:− "(a) Lead Merchant Bankers shall obtain similar information from other intermediaries including Self Certified Syndicate Banks to ensure that they comply with these guidelines and a confirmation from all intermediaries including Self Certified Syndicate Banks that they are eligible to be associated with the concerned issue." 46. In clause 16.2.2.1, in sub−clause (b), after the word "measures" and before the words "to resolve", the words "including guidance to the ASBA investors to approach the Self Certified Syndicate Banks for redressa....
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...., the following shall be inserted, namely:− "(c) Payment instructions for Applications Supported by Blocked Amount" 56. In schedule VIIA, in para X, in point 2 (xvii), sub−point (d) shall be substituted with the following, namely:− "(d) Rejection of Bids" SCHEDULE XX-A [Clauses 5.6A, 9.1.12 (c) and 9.5] FORMATS OF ISSUE ADVERTISEMENTS 57. In part A under section "AVAILABILITY OF APPLICATION FORMS" the following para shall be inserted after the existing para: "Application Supported by Blocked Amount forms shall be available with designated branches of Self Certified Syndicate Banks, the list of which is available at websites of Stock Exchanges and SEBI." Annexure II CERTIFICATION BY SELF CERTIFIED SYNDICATE BANKS (SCSBs) A bank which is desirous of becoming a SCSB shall submit to SEBI a certificate as per the format provided hereunder, upon receipt of which the bank's name will be included in the list of SCSBs maintained by SEBI. Format of certificate to be submitted by SCSBs "(i) We, ____ , hold a valid certificate of registration as a ....
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....ur 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 that we fulfil all the conditions stated above for becoming a SCSB. Name and Signature of Authorised official of the Bank" Annexure III DETAILS OF "APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA)" PROCESS The ASBA process is presented in a t....
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....; 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: (i) Total number of ASBAs uploaded by theSCSB (ii) 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 ....
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.... Annexure IIIA MAIN CONTENTS OF "APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA)" FORM 1. A statement that ASBA can be used only by an "ASBA investor", i.e., an investor who: (i) is a "Resident Retail Individual Investor"; (ii) is bidding at cut−off, with single option as to the number of shares bid for; (iii) is applying through blocking of funds in a bank account with the Self Certified Syndicate Bank (SCSB); (iv) has agreed not to revise hisƒher bid; (v) is not bidding under any of the reserved categories. 2. Details of A....
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..... The pre−issue merchant banker(s) shall ensure that the ASBA process is provided as one of the modes of accepting bid−cum−application forms in all book built issues which provide for not more than one payment option to the retail individual investors. 2. The pre−issue merchant banker(s) shall ensure that appropriate disclosures are made regarding the ASBA process in the Red Herring Prospectus and abridged prospectus, to enable investors to understand and apply through the process. 3. The pre−issue merchant banker(s) shall ensure that sufficient number of Physical ASBA forms are printed and are made available to all SCSBs. Further, it shall ensure that SCSBs are also provided with a soft copy of the abridged prospectus. 4. The pre−issue merchant banker(s) shall intimate the bidƒ issue opening and closing dateƒ time to SCSBs, including details of revision in priceƒ bidding period, if any. 5. In case of failureƒ withdrawal of the issue, the pre−issue merchant banker(s) shall inform SCSBs regarding the same. 6. The post−issue mercha....
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....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 enteredƒ 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 withdrawalƒ rejection of the ASBAs or receipt of instruction from the Registrar to the Issue for unblocking the bank accounts for the purpose of transferrin....
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....BA) 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. (i....