Streamlining the process of IPOs with UPI in ASBA and redressal of investor grievances
Summary
This circular extends the implementation timelines for specific provisions of a previous SEBI circular regarding IPOs with UPI in ASBA. It mandates that detailed SMS alerts for public issues opening on or after January 01, 2022, and an automated web portal for CUG entities operational from October 01, 2021. Additionally, it revises the procedural deadlines for allotment file submission and unblocking of funds to ensure completion by T+4.
Text
While SCSB’s shall continue to send SMS alerts during the actual block/debit/unblock of UPI mandate in the prescribed format, the details of total number of shares applied/allotted/non-allotted etc shall be included in SMS for Public Issues opening on/after January 01, 2022.
The automated web portal shall be live and operational after due testing and mock trials with the CUG entities for Public Issues opening on or after October 01, 2021. The requisite information on this automated portal shall be updated periodically in intervals not exceeding two hours.
In the interim, for the Public Issues opening from the date of this circular and till the automated web portal is live and operational, the Sponsor Banks shall send the details prescribed in Para 10 of “the circular” to the e-mail address of CUG entities periodically in intervals not exceeding three hours. In case of exceptional events viz., technical issues with UPI handles/PSPs/TPAPS/SCSB’s etc, the same shall be intimated immediately to the CUG entities so as to facilitate the flow of information in the Public Issue process.
The Stock Exchanges and Lead Managers shall facilitating providing the requisite data of CUG entities to Sponsor Bank for the development of automated web portal. Such information shall be provided to the Sponsor Bank before opening of the Public Issue.
The Registrar to the Issue shall provide the allotment/ revoke files to the Sponsor Bank by 8:00 PM on T+3 i.e, the day when the Basis of Allotment (BOA) has to be finalized.
The Sponsor Bank shall execute the online mandate revoke file for Non-Allottees/ Partial Allottees and provide pending applications for unblock, if any, to the Registrar to the Issue, not later than 5:00 PM on BOA+1.
Subsequent to the receipt of the pending applications for unblock from the Sponsor Bank, the Registrar to the Issue shall submit the bank-wise pending UPI applications for unblock to the SCSBs, not later than 6:30 PM on BOA+1.
To ensure that the unblocking is completed on T+4, the Lead Managers, on a continuous basis and before the opening of the public issue shall take up the matter with the SCSB’s at appropriate level.
The contents of the circular shall be mentioned in the DRHP and RHP filed on or after the date of this circular.
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.