Posts Tagged ‘Self Certified Syndicate Banks (SCSBs)’


CIRCULAR, CIR/CFD/DIL/13/2012, dated September 25, 2012

To

All Registered Bankers to an Issue

1. ASBA facility was introduced by SEBI in July 2008, as an alternative mode of payment in the public/rights issue processes. In its continuing endeavour to make the facility more efficient, SEBI reviewed the facility on a continuous basis and following reforms were introduced:

Sr. No

Circular

Reform

1. May 16, 2011 Discount at the time of application
2. April 29, 2011 Defined process for Syndicate ASBA, QIBs & NII

mandated to use ASBA facility

3. October 12, 2010 Syndicate ASBA enabled
4. July 13, 2010 ASBA forms made available online
5. April 06, 2010 ASBA facility extended to QIBs

2. The Hon’ble Finance Minister, while presenting Union Budget 2012-13 announced, inter alia, his intention of simplifying the process of Initial Public Offers (IPOs), lowering capital raising cost and helping companies reach more retail investors in small towns.

3. Based on the analysis of the current presence of ASBA facility, it is felt that there is substantial scope for increasing the reach of ASBA facility to make the application process more convenient for investors.

 4. Towards this end, consultations were held with Reserve Bank of India, Indian Banks’ Association and other market participants, to explore the possibility of providing ASBA facility at all branches of Self Certified Syndicate Banks (SCSBs).

 5. Based on the feedback received in this regard, it has been decided to increase the number of branches designated for ASBA, in a phased manner as under:

 a. First phase

 Fifty percent (50) of the total branches as designated branches for ASBA: Each SCSB is advised to designate 50% of its total branches as ‘Designated Branches’ for ASBA by October 31, 2012.

 b. Second Phase

 All the branches as designated branches for ASBA: Each SCSB is advised to designate all of its branches as ‘Designated Branches’ for ASBA by December 31, 2012.

 6. All SCSBs shall submit a status report for each phase of the circular in the format prescribed at Annexure I, within 15 days from the due date of the phase respectively.

 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 categories “Legal Framework” and “Issues and Listing”.

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Annexure I

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Click here to download the complete text of the above Circular in PDF Format- CIRCULAR, CIR/CFD/DIL/13/2012, dated September 25, 2012.

Source: Securities and Exchange Board of India.

 

 

 


 

CIRCULAR, CIR/CFD/DIL/12/2012, dated September 13, 2012

To

All Registered Bankers to an Issue

1. This has reference to SEBI Circular No. SEBI/CFD/DIL/ASBA/1/2009/30/12 dated December 30, 2009, on the captioned subject.

2. It has come to our notice that some banks while making applications on own account using ASBA facility are doing so without having clear demarcated funds and that some banks are marking lien against credit limits / overdraft facility of their account holders’ for ASBA applications.

3. Self Certified Syndicate Banks (SCSBs) are hereby advised to ensure that for applications made by any investor using ASBA facility, the SCSBs shall block the application amount only against/in a funded deposit account and ensure that clear demarcated funds are available for ASBA applications.

4. SCSBs are also advised to ensure that for making applications on own account using ASBA facility, they should have a separate account in own name with any of the SEBI registered SCSBs. Such account shall be used solely for the purpose of making application in public issues and clear demarcated funds should be available in such account for ASBA applications.

5. This circular shall come into force with immediate effect.

6. 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.

7. 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-CIRCULAR, CIR/CFD/DIL/12/2012, dated September 13, 2012.

Source: Securities and Exchange Board of India.