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Wednesday, July 14, 2010

SEBI makes ASBA facility more accessible

The Securities and Exchange Board of India (“SEBI”), vide its circular dated June 13, 2010 (“Circular”), has mandated the stock exchanges to make available the Application Supported by Blocked Amount (“ASBA”) bid/application forms, on their respective website for downloading before opening a public issue. The provisions of this circular shall be applicable only on the public issues opening on or after July 19, 2010.

Such ASBA form will have a unique application number, which will be used for making ASBA applications during public issue. The Circular also requires the merchant banker to ensure that details such as company name, type of issue, issue opening date, issue closing date, price/price band, bid lot or other relevant details are provided to concerned stock exchanges two days prior to the date of opening of the public issue. This will facilitate the stock exchange to furnish all such details obtained from the merchant banker in the ASBA form, before publishing the same on its website.

Further, the stock exchange is required to make available the ASBA form on its website at least one day before opening of the public issue. The investors should also have online access to the soft copy of the abridged prospectus/prospectus of the public issue.

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