Public issues in electronic form and use of nationwide broker network of Stock Exchanges for submitting application forms

CIR/CFD/14/2012 · 2012-10-04 · SEBI

Summary

This circular mandates that public issues of Rs. 10 crore and above must be issued in electronic form through the nationwide broker network of stock exchanges. It establishes a mechanism for investors to submit ASBA and non-ASBA applications via registered brokers who are not syndicate members. The document outlines procedural steps for application submission, fund blocking or cheque deposit, reconciliation by registrars, and commission payments to non-syndicate brokers. This section outlines the indicative timelines for various activities in a public issue mechanism, spanning from the issue opening date to T+12. It details specific obligations for registrars, stock exchanges, brokers, and collecting banks regarding bid validation, fund blocking, and allotment reconciliation. The process culminates in the commencement of trading after all formalities, including demat credit and listing permissions, are completed.

Text

make it mandatory for companies to issue IPOs of Rs.10 crore and above in electronic form through nationwide broker network of stock exchanges

introduce an additional mechanism for investors to submit application forms in public issues using the stock broker (“broker”) network of Stock Exchanges, who may not be syndicate members in an issue

This mechanism can be used to submit ASBA as well as non-ASBA applications by investors

Stock Exchanges shall provide for download of application forms on their websites/broker terminals, so that any investor or stock broker can download/print the forms directly

Stock Exchanges shall ensure that the information relating to price band is pre-filled in such downloadable application forms

The facility to submit the application forms will be available in more than 1000 locations... increase the number of broker centres, in a phased manner

details of locations including name of the broker, contact details... will be disclosed by the Stock Exchanges on their websites at least 15 days before the dates specified above

Merchant Bankers shall ensure that appropriate disclosures in this regard are made in the offer document

All intermediaries are advised to take necessary steps to ensure compliance with this circular

This circular shall be applicable for all offer documents filed with Registrar of Companies on or after January 01, 2013

Broker shall be responsible for uploading the bid on the Stock Exchange platform, banking the cheque / submitting the ASBA form to SCSB, etc. and liable for any failure in this regard

Stock Exchanges shall take action against brokers who fail to comply with the requirements of this circular and in case of repeated non-compliances; appropriate action shall be taken

Source: SecMarx — Public issues in electronic form and use of nationwide broker network of Stock Exchanges for submitting application forms. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.