New rules you need to know about IPO application
1) ASBA (Application Supported by Blocked Amount) Application withholding amount will be processed after the applications in public issues are deposited in the investor’s bank account.
2) Stock exchanges will accept ASBA applications with mandatory confirmation of application money deposited on their e-book site. This applies to all types of investors.
3) These rules apply to retail, qualified institutional buyers, non-institutional investors and all other categories and methods of processing applications.
4) All stakeholders involved in the process are advised to take necessary steps to ensure compliance with this Circular. SEBI has said that commercial bankers should coordinate with all stakeholders in this regard.
5) This circular is applicable to IPOs opened after September 01, 2022.
In December 2009, SEBI recommended ASBA’s public offering facility to all types of investors except Qualified Institutional Buyers (QIBs). In May 2010, SEBI extended this feature to QIBs.
What is ASBA?
ASBA is an investor application approved by Syndicate Bank (SCSB) for self-certification in a bank account where subscription application money is withheld. If an investor applies through ASBA his application money will be debited from the bank account only if his application is selected for allotment after finalization on the basis of allotment.
Fab India, Adar Housing Finance, Co Airlines, FormEC, Oravel Stays (Oyo), Drome, Epic, Gemini Edible Eight Bates, Five Star Business Finance, TVS Supply Chain Solution Soljon, Maglovi’s, McLean It is noteworthy that companies are waiting for these new IPO terms.