Streamlining the process of IPOs with UPI in ASBA and redressal of investor grievances
Summary
This circular streamlines the IPO process with UPI in ASBA by addressing systemic issues such as delayed fund blocking and unblocking. It mandates specific timelines for intermediaries, including Stock Clearing System Banks (SCSBs) and Registrars to an Issue (RTI), to ensure timely reconciliation and investor communication. The document establishes a compensation structure for investors facing delays and makes these provisions part of offer documents effective from May 1, 2021. This section outlines the certification and reporting requirements for Scheduled Commercial Banks (SCSBs) participating in IPO applications via UPI. It mandates specific certificate formats confirming NPCI certification, system readiness, and nodal officer details for ASBA with UPI facilities. Additionally, it prescribes SMS content standards for investors and compliance certificates for unblocking funds post-allotment. The document outlines the responsibilities of the SCSB regarding investor grievances related to fund blocking and unblocking in ASBA-UPI facilities. It details specific compensation mechanisms for scenarios such as delayed unblocking, multiple amount blocks, and excess fund blocks. Additional
Text
Lead Manager is the nodal entity for any issues arising out of a public issuance process and shall ensure adherence of timelines, processes and compensation policy by intermediaries.
SCSBs shall identify the nodal officer for IPO applications processed through UPI and submit details to SEBI within 7 working days from the issuance of this circular.
SCSBs shall send SMS alerts for mandate block and unblock including details prescribed in Annexure II.
Sponsor Banks shall host a web portal for intermediaries from IPO opening till listing with details of statistics of mandate blocks/unblocks, performance of Apps and UPI Handles, and down-time.
Facility of re-initiation provided to Syndicate Members shall preferably be allowed only once per bid/batch and as deemed fit by the concerned Stock Exchange after bid closure time.
RTIs shall submit details of cancelled/withdrawn/deleted applications to SCSBs on daily basis within 60 minutes of bid closure time; SCSBs shall unblock such applications by closing hours of bank day.
Sponsor Banks shall execute the online mandate revoke file for Non-Allottees /Partial Allottees on BOA+1 and submit pending applications to RTA not later than 12:30 PM on BOA+1.
RTI shall submit bank-wise pending UPI applications for unblock to SCSBs along with allotment file not later than 02:00 PM on BOA+1.
SCSBs shall ensure that the unblock for non-allotted/partial-allotted applications is completed by the closing hours of bank day on BOA+1 and submit confirmation to Lead Managers and RTA.
SCSBs failing to provide details as per Annexure IV to Lead Managers/RTI not later than BOA+1 shall be liable to face appropriate action under Securities Laws.
Compensation structure as prescribed in Annexure V shall be applicable for redressal of complaints pertaining to Block/Unblock of funds; SCSBs shall compensate immediately on receipt of complaint.
If there is delay in resolving grievance beyond date of receipt of complaint, additional compensation as per Annexure VI shall be applicable for each day of delay.
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Source: SecMarx — Streamlining the process of IPOs with UPI in ASBA and redressal of investor grievances. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.