IPO Rules News: Capital markets regulator SEBI on Wednesday streamlined fee payment system through UPI (Unified Payment Interface) for allotment and application for shares during initial public offering (IPO). In addition, the Securities and Exchange Board of India (SEBI) has prescribed a new reporting format for receiving data on all ASBA (Amount Blocked Through Application) applications to ‘unblock’ all ASBA (Amount Blocked Through Application) by a Group of Self-Certified Banks (SCSBs). is.
New format introduced
SEBI said in a circular that the new format has been brought after reviewing the functioning of SCCB and suggestions received from market intermediaries for timely removal of moratorium on application money. As per the circular, the SCSB Merchant Banker/Issue/Registrar of Issuers will be responsible for furnishing the information as requested. Along with this, he will also be responsible for compensation for the delay in releasing the application amount after claiming the processing fee.
SMS alerts will also have to be sent- SEBI
“If SCSBs do not comply with the provisions of the circular, action will be taken against them under the Securities Act,” the regulator said. With regard to SMS received by investors, SEBI said that SCSB/UPI apps eligible for public issue will send ‘SMS Alerts’ to investors for all ASBA applications. You can also send bills by e-mail. This will be an additional facility, which will give complete details about payment through UPI.
will come into force with immediate effect
NPCI (National Payments Corporation of India) had proposed to send the bill to SEBI on e-mail to ensure that the investors get the information at the right time. The details that need to be given through SMS include the name of the IPO, application amount and the date on which the amount was frozen, etc. This provision will come into force with immediate effect. The provisions of this circular shall form part of the Offer Document including the Presentation Booklet for the IPO.