Applications Supported by Blocked Amount (ASBA) facility in public issues and rights issues.
Summary
This circular introduces ASBA Phase II, extending the Application Supported by Blocked Amount facility to rights issues and all investors except Qualified Institutional Buyers in public issues. It mandates that banks register as Self Certified Syndicate Banks (SCSBs) by submitting a readiness certificate to SEBI before January 1, 2010. The document outlines eligibility criteria, operational procedures for blocking funds, and the withdrawal of previous ASBA-related circulars. This section outlines the certification requirements for Self Certified Syndicate Banks (SCSBs) to implement the ASBA Phase II facility. It details the specific operational responsibilities, system infrastructure, and compliance obligations that banks must undertake and certify to SEBI. Additionally, it provides a chronological table of procedures governing the submission, blocking, reconciliation, and unblocking of funds in ASBA applications. This section outlines the mandatory contents of the ASBA form, specifying required investor details, bank account information, and necessary declarations. It further defines the specific roles and responsibilities of Self Certified Syndicate Banks (SCSBs) in processing, b
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ASBA means ‘Application Supported by Blocked Amount’ as defined in clause (d) of sub‐regulation (1) of regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
A bank desirous of being a SCSB in ASBA Phase II facility, shall submit a certificate to SEBI as per the format given in Annexure I, for inclusion of its name in SEBI’s list of SCSBs.
A SCSB shall identify its Designated Branches (DBs) at which an ASBA investor shall submit ASBA and shall also identify the Controlling Branch (CB) which shall act as a coordinating branch for the Registrar to the Issue, Stock Exchanges and Merchant Bankers.
The SCSB shall communicate the following details to Stock Exchanges for making it available on their respective websites... Name and address of the SCSB; Addresses of DBs and CB... Name and contact details of a nodal officer...
In public issues: All investors except Qualified Institutional Buyers (QIBs) are eligible to apply through ASBA in public issues;
In rights issues: All shareholders of the issuer company as on the record date provided if he/ she/it: (a) is holding shares in dematerialised form... (b) has not renounced his/ her entitlements... (c) is not a renouncee... (d) applies through a bank account maintained with SCSBs.
An ASBA investor shall submit an ASBA physically or electronically... to the SCSB... The SCSB shall then block the application money in the bank account specified in the ASBA... till finalisation of the basis of allotment...
Once the basis of allotment is finalized, the Registrar to the Issue shall send an appropriate request to the CB of SCSB for unblocking the relevant bank accounts and for transferring the requisite amount to the issuer’s account... In case of withdrawal/ failure of the issue, the amount shall be unblocked by the SCSB...
The issuer shall ensure that adequate arrangements are made by the Registrar to the Issue to obtain information about all ASBAs and to treat ASBA similar to non‐ASBA applications while finalizing the basis of allotment...
ASBA Phase‐II shall be applicable to all public issues and rights issues with single payment option which are opening on or after January 1, 2010.
Banks who are registered with SEBI as Bankers to issue... and are desirous of participating as Self Certificate Syndicate Bank (SCSB ) in ASBA Phase II, are advised to (i) undertake the necessary modifications in their system... (ii) complete the mock trial run... and (iii) certify to SEBI about their readiness...
after January 1, 2010, electronic interface provided by Stock Exchanges... will not be able to accept any application... from any bank which has not given the certificate of readiness for ASBA Phase II to SEBI.
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Source: SecMarx — Applications Supported by Blocked Amount (ASBA) facility in public issues and rights issues.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.