All Intermediaries and Self Certified Syndicate Banks (SCSBs),
You are requested to note that Securities and Exchange Board of India vide its circular no. SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated Nov 1, 2018 (copy attached) has introduce the use of Unified Payments Interface (UPI) as a payment mechanism with Application Supported by Block Amount (ASBA) for applications in public issues by retail individual investors (application amount upto Rs.2,00,000/-) through Intermediaries (Syndicate Members, Registered Stock Brokers, Registrar and Transfer Agent and Depository Participants) to increase efficiency, eliminate the need for manual intervention at various stages, and to reduce the time duration from issue closure to listing by or upto 3 working days.
The aforesaid circular shall be applicable for all Red Herring Prospectus filed for public issues opening on or after January 01, 2019.
UPI Mechanism will be implemented in phase manners as follows:
Phase I:
From January 01, 2019, the UPI mechanism for Retail Individual Investors through Intermediaries will be made effective along with the existing process of Member ASBA and existing timeline of T+6 days. The same will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later
Phase II:
Thereafter, for applications by Retail Individual Investors through Intermediaries, UPI Mechanism will be compulsory with existing timeline of T+6 days, for a period of 3 months or floating of 5 main board public issues, whichever is later.
Phase III:
Subsequently, final reduced timeline will be made effective using the UPI mechanism
Pursuant to implementation of UPI Mechanism, there are changes in process of Bid capture through online screen (single bid entry) , API as well as the Bulk File Upload by Intermediaries for bidding of RII bids (i.e. retail individual bid amount upto Rs.2,00,000/-) through iBBS (internet Based Book Building Software) of BSE under:
1. Single Bid Entry
The User will have the option to choose following bid options:
- ASBA Bid – Existing process available till phase I
- UPI Id Bid – The User is required to enter the UPI Id provided by the investor in iBBS platform.
2. File Upload Facilities for Bulk Entries/ API
- ASBA Bid – Existing process available
- UPI Id Bid – The User is required to mentioned Bank Code as “8888” and Location as “UPIIDL” and UPI ID (upto 45 Characters) while uploading on iBBS platform.
3. No Change in file Format
Intermediaries are requested to note that there is no change in the bulk upload file format except the length of Bank Account/ UPI ID field is increased to 45 characters.
4. Modification/ Cancellation of UPI Bid will be similar to existing ASBA bid process.
5. Status Report of UPI Bids
The Users will get the following status of UPI Bids entered by them in iBBS platform in separate report:
1. Confirm Bid - With amount of confirmation
2. Decline Bid - With Reason of Decline
3. Pending Bid - Pending Confirmation by the Investor
6. Re-initiation of Bids
- The Intermediaries will have the option to Re-initiate the bids which are pending for confirmation by the Investors
- Re-initiation can be activated through single bid/ multiple bids selection in UPI Report
If Intermediaries use the re-initiation option, the SMS will be resend to Investor for confirmation of blocking of funds through Sponsor Bank without changing the existing status of the Bid. The Intermediaries will be able to use re-initiation of bid option only three times for a bid during bidding period.
7. Modification of Selected Fields
The Users shall be allowed to modify of selected fields viz. DP ID/Client ID or Pan ID (Either DP ID/Client ID or Pan ID can be modified but not BOTH), Bank code and Location code upto T+1 day for validated bids
SCSBs are requested to note that there is no change for bidding through iBBS platform for SCSBs pursuant to implementation of UPI Mechanism in phase manner.
Further Intermediaries are requested to note that there is no change in bidding through iBBS platform for bids above Rs.2 Lacs for all type of categories.
The issue is already created on UAT server on BSE for mock. The same was also communicated to all Trading Members, Depositories Participants and RTAs, vide Exchange email dated Dec 7, 2018.
The parameters of Issue are attached herewith for information.
All market intermediaries are requested to participate in mock session which available on UAT Server.
Unified Payments Interface (UPI) as a payment mechanism for retail individual investors through intermediaries (Syndicate Members, Registered Stock Brokers, Registrar and Transfer Agent and Depository Participants) will be available on Live Server of iBBS (internet-based Book Building Software of BSE) for Public Issues of Equity Shares and Convertibles opening on or after January 01, 2019.
Trading Members are requested to take note of the same.
Sandeep Pujari Bhushan Mokashi
AGM- Trading Operations ADGM- Listing Sales
December 26th 2018
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