Application Supported by Blocked Amount (ASBA) facility in public/ rights issue
Summary
SEBI clarifies that State Co-operative Banks (SCSBs) must maintain a separate account with another SEBI-registered SCSB to use the ASBA facility for their own applications. This requirement ensures clear demarcation of funds and prevents the misuse of accounts held with the applicant bank itself. The clarification applies immediately and is issued under Section 11 read with Section 11A of the SEBI Act, 1992.
Text
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.
This circular shall be applicable with immediate effect.
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.
Source: SecMarx — Application Supported by Blocked Amount (ASBA) facility in public/ rights issue. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.