Compensation to Retail Individual Investors (RIIs) in an IPO

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..... ecurities and in the process may have suffered an opportunity loss due to the following factors: a) Failure on part of the Self Certified Syndicate Banks (SCSBs) to make bids in the concerned Exchange system even after the amount has been blocked in the investors bank account with such SCSB. b) Failure on part of the SCSB to process the ASBA applications even when they have been submitted within time. c) Any other failures on part of an SCSB which has resulted in the rejection of the application form. 2. A need has been felt to have a uniform policy for calculation of minimum compensation payable to investors in scenarios mentioned in Para 1. a), b) and c) of this Circular. While doing so, the following factors have been taken .....

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..... CSB, shall have the option to seek redressal of the same within three months of the listing date with the concerned SCSB. On receipt of such application/s, the SCSB would be required to resolve the same within 15 days, failing which it would have to pay interest at the rate of 15% per annum for any delay beyond the said period of 15 days. 8. In case the SCSBs fail to redress such grievances within the stipulated time, additionally SEBI may initiate action as deemed fit. 9. This circular shall come into force with immediate effect. SCSBs are also advised to resolve all pending issues related to non-allotment of specified securities whether on the SEBI SCORES portal or otherwise using the compensation policy outlined in this Circular. .....

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..... s applied for at each lot No. of investors who shall receive minimum bid-lot (to be selected on lottery) Allotment Ratio Determined No. of shares allotted per allottee (minimum lot size) A B C D=(B*C) E F = E:C G 1 20 10,000 200,000 8750=(175000/200 000)*10000 7:8 20 2 40 10,000 400,000 8,750 7:8 20 .....

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..... 12 240 10,000 2,400,000 8,750 7:8 20 13 260 10,000 2,600,000 8,750 7:8 20 14 280 5,000 1,400,000 4,375 7:8 20 15 300 15,000 4,500,000 13,125 7:8 20 16 320 10,000 3, .....

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