Additional mode of payment through Applications Supported by Blocked Amount (ASBA)
Summary
This document introduces the Applications Supported by Blocked Amount (ASBA) process as a supplementary payment mode for public issues. It defines ASBA, Self Certified Syndicate Banks (SCSBs), and eligible investors while outlining the operational workflow for blocking funds. The text also details the specific amendments made to the SEBI (DIP) Guidelines, 2000 to incorporate these new provisions. This section amends the contents of the offer document to incorporate specific requirements for Application Supported by Blocked Amount (ASBA) processes. It establishes post-issue obligations for Lead Merchant Bankers regarding monitoring and grievance redressal related to ASBA applications. Additionally, it updates book-building and operational guidelines to define the roles of Self Certified Syndicate Banks in accepting and processing ASBA bids. This section mandates textual amendments to various schedules within the SEBI ICDR Regulations to incorporate Self Certified Syndicate Banks (SCSBs) into their respective provisions. It establishes a certification format that banks must submit to SEBI to be included in the official list of SCSBs. Additionally, it details the procedural steps and
Text
SEBI has decided to introduce a supplementary process of applying in public issues, viz., the “Applications Supported by Blocked Amount (ASBA)” process.
The ASBA process shall be available in all public issues made through the book building route.
ASBA is an application for subscribing to an issue, containing an authorisation to block the application money in a bank account.
SCSB is a bank which offers the facility of applying through the ASBA process.
A bank desirous of offering ASBA facility shall submit a certificate to SEBI as per the format given in Annexure II... for inclusion of its name in SEBI’s list of SCSBs.
On inclusion in the list of SCSBs, a bank shall commence its activities as an SCSB w.e.f. the 1st or 15th of a month, whichever is earlier, from the date of such inclusion.
It shall then be deemed to have entered into an agreement with the issuer and shall be required to offer the ASBA facility to all its account holders for all issues to which ASBA process is applicable.
A SCSB shall identify its Designated Branches (DBs) at which an ASBA investor shall submit ASBA and shall also identify the Controlling Branch (CB).
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...
An Investor shall be eligible to apply through ASBA process, if he/ she : (i) is a “Resident Retail Individual Investor”; (ii) is bidding at cut-off...
An ASBA investor shall submit an ASBA physically or electronically through the internet banking facility, to the SCSB with whom the bank account to be blocked, is maintained.
The SCSB shall then block the application money in the bank account specified in the ASBA, on the basis of an authorisation to this effect given by the account holder in the ASBA.
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Source: SecMarx — Additional mode of payment through Applications Supported by Blocked Amount (ASBA). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.