Notices
Notice No20190619-23Notice Date19 Jun 2019
CategoryOthersSegmentEquity
SubjectStreamlining the Process of Public Issue of Equity Shares and convertibles
Content

Trading Members 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 and circular no. SEBI/HO/CFD/DIL2/CIR/P/2019/50 dated April 3, 2019  has introduced 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 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 upto 3 working days.

The aforesaid circulars were applicable for all Red Herring Prospectus filed for public issues opening on or after January 01, 2019. Considering the time required for making necessary changes to the systems and to ensure complete and smooth transition to UPI payment mechanism (the alternate payment mechanism) has been introduced in a phased manner.

 

In Phase I from January 01, 2019, the UPI mechanism for Retail Individual Investors (RII) (individual Investors biding for amount upto Rs.2 Lacs) through intermediaries made effective along with the existing process, whereby RII would also have the option to submit bid-cum-application form with any of the intermediary and use his / her bank account linked UPI ID for the purpose of blocking of funds.

 

Also RII would continue to have the option of submission of bid-cum-application form with any of the intermediary, along with details of his/her bank account for blocking of funds. In such case, the intermediary would upload the bid in stock exchange bidding platform and forward the application form to a branch of SCSB for blocking of funds (Intermediary/ Syndicate ASBA).

 

In Phase II, effective from July 1, 2019 (for issue opening on or after July 1, 2019) for applications by Retail Individual Investors through intermediaries, the existing process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks (SCSBs) for blocking of funds (Intermediary/ Syndicate ASBA) will be discontinued and only the UPI mechanism will continue.

 

However, RII would continue to have the option to submit the bid-cum-application form online using the facility of linked online trading, demat and bank account (3-in-1 type accounts) provided by some of the brokers along with details of his/her bank account for blocking of funds.

 

In accordance with above SEBI circulars effective from July 1, 2019 (for issue opening on or after July 1, 2019):

·         Trading Members will be restrained to place the bid on iBBS platform (iBBS – Internet based Book Building Software provided by BSE) for bid-cum-application of Retail Individual Investor with details of investor’s bank account for blocking of funds (Intermediary/ Syndicate ASBA)

·         Trading Members will be able to place the bid on iBBS platform for bid-cum-application of Retail Individual Investor with UPI id for blocking of funds

·         Trading Members with 3-in-1 accounts facility (electronic connectivity with bank, depository and trading activities) will have both options to place the bid for bid-cum-application of Retail Individual Investor with details investor’s bank account (Intermediary/ Syndicate ASBA) as well as UPI id for blocking of funds on iBBS platform  

 

Trading Members with 3-in-1 accounts facility shall be required to submit a self-declaration/ undertaking to the Exchange as given in Annexure I by Jun 28, 2019. The Exchange after evaluation of the self-declaration/ undertaking submitted by Trading Members with 3-in-1 accounts facility will enable the acceptance of Intermediary/ Syndicate ASBA bids on iBBS platform for such Trading Members post July 1,2019.     

 

Trading members may contact us on the following email Ids for further clarification if any:

·         Ibbs.ops@bseindia.com

·         Listing.sales@bseindia.com

 

Trading Members are requested to note that for all other categories bidding with Intermediary/ Syndicate ASBA will remain continue for all Trading Members registered with iBBS platform.

 

Attachments
Annexure I.pdf