Streamlining the Process of Public Issue of Equity Shares and convertibles- Extension of time lime for implementation of Phase II of Unified Payments Interface with Application Supported by Blocked Amount

SEBI/HO/CFD/DCR2/CIR/P/2019/133 · 2019-11-08 · SEBI

Summary

This circular extends the implementation timeline for Phase II of UPI with ASBA in public issues until March 31, 2020. It mandates that retail individual investors applying through intermediaries must use the UPI mechanism within a T+6 days framework. The document outlines detailed operational timelines and reconciliation steps for various entities involved in the public issuance process. This section details the post-issue reconciliation, allotment, and listing procedures spanning from T day to T+6. It mandates specific timelines for fund blocking, technical rejection analysis, basis of allotment approval, and final demat credit confirmation by various entities including Registrar, SCSBs, and Merchant Bankers. The process concludes with the publication of allotment advertisements, commencement of trading, and a final compliance report submitted to SEBI. The document concludes with Annexure A, which provides a tabular format for reporting ASBA application data across BSE and NSE exchanges. Annexure B lists eight specific data points required for tracking unique applications, allottees, non-allottees, and UPI transaction outcomes. These annexures serve as structured templates for me

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extend the timeline for implementation of Phase II of the aforesaid Circular till March 31, 2020

timelines and processes shall continue to form part of the agreements being signed between the intermediaries involved in the public issuance process and lead managers shall continue to coordinate with intermediaries involved in the said process

All entities involved in the process are advised to take necessary steps to ensure compliance with this circular

An investor, intending to subscribe to a public issue, shall submit a completed bid-cum-application form to any of the following entities: i. an SCSB... ii. a syndicate member... iii. a stock broker... iv. a depository participant... v. a registrar to an issue and share transfer agent

Retails investors submitting application with any of the entities at (ii) to (v) above (hereinafter referred as ‘Intermediaries’), have to use UPI and shall also their UPI ID in the bid-cum-application form

The aforesaid entities shall, at the time of receipt of application, give an acknowledgement to investor, by giving the counter foil or specifying the application number to the investor, as a proof of having accepted the application form, in physical or electronic mode, respectively

After accepting the form, SCSB shall capture and upload the relevant details in the electronic bidding system as specified by the stock exchange(s) and blocked funds available in the bank account specified in the form, to the extent of the application money specified

After accepting the application form, respective intermediary shall capture and upload the relevant bid details, including UPI ID, in the electronic bidding system of stock exchange(s). Stock exchange(s) shall validate the electronic bid details with depository’s records for DP ID/Client ID and PAN Combination, on a real time basis through API Integration

Stock Exchange to share bid details including the UPI ID with Sponsor Bank on a continuous basis through API integration, to enable Sponsor Bank to initiate mandate request on investors for blocking of funds. Sponsor Bank to initiate request for blocking of funds through NPCI to investor

Sponsor bank shall do a reconciliation of bid requests received to issue from exchange(s) and sent to NPCI. Sponsor bank shall ensure that all the bids received from exchange(s) are pushed to NPCI

NPCI shall ensure that all the bid requests received from sponsor bank are pushed to the corresponding payment system participants of issuer banks. The issuer banks/sponsor bank shall download the mandate related UPI settlement files and raw data files from NPCI portal on daily basis... and shall do a three way reconciliation with Banks UPI switch data, CBS data and the UPI raw data

The issuer banks shall process all the incoming bid requests from NPCI and shall send the response to NPCI in real time. NPCI shall further facilitate the flow of these responses to sponsor bank

Source: SecMarx — Streamlining the Process of Public Issue of Equity Shares and convertibles- Extension of time lime for implementation of Phase II of Unified Payments Interface with Application Supported by Blocked Amount. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.