CIRCULAR, CIR/CFD/14/2012, dated October 04, 2012
All Stock Exchanges
All Registered Merchant Bankers
All Registered Registrars to an Issue
All Registered Bankers to an Issue
1. The Hon’ble Finance Minister announced the following in his speech while presenting Union Budget 2012-13:
“Simplifying the process of issuing Initial Public Offers (IPOs), lowering their costs and helping companies reach more retail investors in small towns. To achieve this, in addition to the existing IPO process, I propose to make it mandatory for companies to issue IPOs of Rs.10 crore and above in electronic form through nationwide broker network of stock exchanges”
2. Pursuant to the above, in consultation with various market participants, SEBI has decided to introduce an additional mechanism for investors to submit application forms in public issues using the stock broker (“broker”) network of Stock Exchanges, who may not be syndicate members in an issue.
3. This mechanism can be used to submit ASBA as well as non-ASBA applications by investors.
4. Stock Exchanges shall provide for download of application forms on their websites/broker terminals, so that any investor or stock broker can download/print the forms directly.
5. Stock Exchanges shall ensure that the information relating to price band is pre-filled in such downloadable application forms.
6. The facility to submit the application forms will be available in more than 1000 locations which are part of the nationwide broker network of the Stock Exchanges and where there is a presence of the brokers’ terminals (hereinafter referred to as “broker centre”). Based on the feedback received from market participants in this regard, it has been decided to increase the number of broker centres, in a phased manner as under:
a. First phase
Around four hundred (400) broker centres to be covered by January 01, 2013
b. Second phase
Remaining centres to be covered by March 01, 2013
7. Accordingly, details of locations including name of the broker, contact details such as name of the contact person, postal address, telephone number, e-mail address of the broker, etc. where the application forms shall be collected will be disclosed by the Stock Exchanges on their websites at least 15 days before the dates specified above. Stock Exchanges should ensure that the details so disclosed on their websites are regularly updated.
8. The details of this mechanism and the indicative timelines for various activities under this mechanism are specified at Annexures A and B respectively.
9. Merchant Bankers shall ensure that appropriate disclosures in this regard are made in the offer document.
10. All intermediaries are advised to take necessary steps to ensure compliance with this circular.
11. This circular shall be applicable for all offer documents filed with Registrar of Companies on or after January 01, 2013.
12. This circular is issued in exercise of powers conferred under Section 11 of the Securities and Exchange Board of India Act, 1992.
13. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Issues and Listing”.
Click here to download the complete text of the above Circular in PDF Format- Public issues in electronic form and use of nationwide broker network of Stock Exchanges for submitting application forms.