Applications Supported by Blocked Amount (ASBA) facility in public issues
Summary
This circular modifies the ASBA facility procedures by allowing syndicate members to procure and submit ASBA forms to Self Certified Syndicate Banks. It establishes a fee structure where syndicate members receive selling commissions and SCSBs receive processing fees for forms submitted through them. The directive mandates specific disclosures in offer documents and applies immediately to prospectuses filed after October 12, 2010.
Text
syndicate / sub-syndicate members may procure ASBA forms from the investors and submit it to Self Certified Syndicate Banks (SCSBs).
Syndicate / sub-syndicate members would be required to upload the bid and other relevant details of such ASBA forms in the bidding platform provided by the stock exchanges and forward the same to the respective SCSBs.
SCSBs shall carry out further action for such ASBA forms such as signature verification, blocking of funds etc. and forward these forms to the registrar to the issue.
the syndicate / sub-syndicate members shall now be entitled for selling commission for ASBA forms procured by them in the same manner as for non-ASBA forms.
SCSBs shall be entitled for per form processing fee for ASBA forms procured by syndicate / sub-syndicate members and submitted with SCSBs.
For ASBA forms procured directly by SCSBs, they would be entitled for selling commission only and no processing fee shall be paid to them.
Merchant Bankers shall ensure that an appropriate disclosure is made in the offer document specifying the range of fee that SCSBs would be entitled to for processing such ASBA forms procured by syndicate members/ sub-syndicate members and submitted to SCSBs.
All intermediaries are directed to comply with the instructions contained in this circular.
This circular shall be applicable with immediate effect for Red Herring Prospectus/Prospectus to be filed with Registrar of Companies on or after the date of this circular.
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 — Applications Supported by Blocked Amount (ASBA) facility in public issues. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.