TaxTMI 
TaxTMI 
Circular on Applications Supported by Blocked Amount - Stock Exchanges
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....hrough the book building route. It shall co-exist with the current 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 I, 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 w....
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....Once the basis of allotment is finalized, the Registrar to the Issue shall send an appropriate request to the SCSB for unblocking the relevant 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 II. 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 the Stock Exchanges in the ASBA process are given in Annexure III, for due compliance by the Stock Exchanges. 5. The roles and respon....
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....basis of allotment or withdrawal/ failure of the issue or withdrawal/ rejection of the application, as the case may be. Uploading details of the ASBA in the electronic bidding system of the Stock Exchange(s), sending to and receiving from the Registrar(s), data pertaining to the ASBA and the issue, in a secured form. d. Ensuring that there is a proper segregation of applications/ amount/ data issuewise in respect of various issues that may be open simultaneously. e. Unblocking funds in the bank account specified in the ASBA upon receipt of request from Registrar(s) or on withdrawal/ rejection of the ASBA, and releasing the funds in favour of the issuer. f. Unblocking funds in the bank account specified in the ASBA upon receipt of information on withdrawal/ failure of the issue from the post issue merchant bankers. (iv) We have systems in place to ensure that the amount blocked by us in the bank account specified in the ASBA shall be available at all times, for the purpose of giving it to the issuer upon finalisation of the basis of allotment. (v) We are responsible for any omission o....
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....nt of the application money specified in the ASBA. The SCSB shall then capture/ upload the following details in the electronic bidding system provided by the Stock Exchange(s) for the particular public issue: (i) Application number (ii) DP ID, Client ID (iii) Bid Quantity (iv) PAN In case of an Electronic ASBA, the ASBA investor himself/ herself shall fill in all the abovementioned details, except the application number which shall be system generated. The SCSB shall thereafter upload all the abovementioned details in the electronic bidding system provided by the Stock Exchange(s). Bidding period 5. The SCSB (Controlling Branch (CB) or DBs) shall generate a Transaction Registration Slip/ Order number, confirming upload of ASBA details in the electronic bidding system of the Stock Exchange(s). The Transaction Registration Slip/ Order number shall be given to the ASBA investor as a proof of uploading the details of ASBA, only on demand. Bidding period 6. In case an ASBA investor wants to withdraw his/ her ASBA during the bidding period, he/ she shall submit his/ her withdrawal request to the SCSB, which ....
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.... 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 to in sub-para (ii) above, shall be transferred to the issuer's account (iv) Details of rejected ASBAs, if any, along with reasons for rejection and details of withdrawn/ unsuccessful ASBAs, if any, to enable SCSBs to unblock the respective bank accounts. T+13 16. SCSBs shall unblock the relevant bank accounts for: (i) Transfer of requisite money to the issuer's account against each valid ASBA. (ii) Withdrawn/ rejected/ unsuccessful ASBAs. The CB of each SCSB shall confirm the transfer of requisite money against each successful ASBA to the Registrar to the Issue. T+14 17. The Issuer shall make the allotment. T+15 18. The Registrar to the Issue shall credit the shares to the demat account of the successful ASBA investors. T+15 Annexure IIA 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 "R....
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....ASBA shall be rejected and the Issuer or SCSB shall not be liable for losses, if any. 5. Provision for acknowledgment of receipt of ASBA. 6. Provision for signature of the applicant and of the account holder, if the account holder is different from the applicant.   Annexure III ROLE AND RESPONSIBILITIES OF THE STOCK EXCHANGES Role and responsibilities of the Stock Exchanges shall include the following: 1. The Stock Exchange(s) shall ensure that details of the Controlling Branch and Designated Branches (DBs) of each SCSB are available on the website of the Stock Exchange(s) in an easily accessible form. 2. The Stock Exchange(s) shall enable: (i) access to their electronic bidding system through a web enabled interface, to SCSBs, for uploading details of ASBA; (ii) SCSBs to upload data on the electronic bidding system in a secured way; and (iii) identification of data uploaded by each SCSB, DB-wise. 3. The Stock Exchange(s) shall ensure that the electronic bidding system provides all the appropriate fields, along with identification of SCSBs, ....
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....ment for the receipt of ASBAs. 6. SCSB shall not upload any ASBA in the electronic bidding system of the Stock Exchange(s) unless - (i) it has received the ASBA in a physical or electronic form; and (ii) it has blocked the application money in the bank account specified in the ASBA or has systems to ensure that Electronic ASBAs are accepted in the system only after blocking of application money in the relevant bank account opened with it. SCSB shall ensure that the details of a particular ASBA are uploaded only once 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 entered/ 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....
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....ints of ASBA investors arising out of errors or delay in capturing of data, blocking or unblocking of bank accounts, etc. are satisfactorily redressed. 16. SCSB shall be liable for all its omissions and commissions in discharging its responsibilities in the ASBA process. (II) Role and Responsibilities of Registrar to the Issue Role and responsibilities of Registrar to the Issue shall include the following: 1. Registrar to the Issue shall obtain the electronic bid data (including the Application Supported by Blocked Amount (ASBA) 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, t....