Reduction in unblocking/refund of application money
Summary
SEBI has reduced the timelines for refunding or unblocking application money in public issues from fifteen or seven days to four days. This amendment applies to scenarios involving non-receipt of minimum subscription and failure to obtain listing permissions. The change aims to protect investor interests given the mandatory use of ASBA and UPI mechanisms.
Text
in case of non receipt of minimum subscription, the issuer is mandated to refund all the application monies within a period of “fifteen days” from the closure of the issue.
in case the issuer fails to obtain listing or trading permission... it shall refund the entire monies received within “seven days” of receipt of intimation from stock exchanges rejecting the application.
intermediaries are responsible to compensate the investors for any delay in unblocking of amounts in the ASBA Accounts exceeding four working days from the bid/issue closing date.
it has been decided to reduce the timelines for refund of the moneys to the investors in the above mentioned events to “ four days”.
in Regulation 45(2), 86(2), 141(2), 202(2)(b) and 202(3)(a) and (b) the words ‘fifteen days’ shall be read as ‘four days’ and in Regulation 53(2), 94(2), 149(2), 208(2), 272(2) the word ‘seven days’ and ‘eighth day’ shall be read as ‘four days’.
This circular is issued in exercise of powers conferred by Section 11(1) and section 11A of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors...
Source: SecMarx — Reduction in unblocking/refund of application money. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.