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Application Supported by Blocked Amount (ASBA) Facility in Public/ Rights Issue

Tuesday, February 05, 2013 Posted by Unknown , No comments
CIRCULAR, CIR/CFD/DIL/1/2013, dated January 2, 2013

To
All Registered Bankers to an Issue
All Registered Merchant Bankers

1. This has reference to SEBI Circular No. CIR/CFD/DIL/12/2012 dated September 13, 2012, on the captioned subject. It has been reported that some Banks/Merchant Bankers are misinterpreting the aforesaid circular and the applications by banks have been made / accepted using an account held with the applicant bank itself.

2. In terms of Para 4 of the aforementioned circular dated September 13, 2012, it is clarified that for making applications by banks on own account using ASBA facility, SCSBs should have a separate account in own name with any other SEBI registered SCSB/s. 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.

3. All other provisions of the aforesaid circulars remain unchanged.

4. This circular shall be applicable with immediate effect.

5. 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.

6. 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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