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TMI BlogPublic issues in electronic form and use of nationwide broker network of Stock Exchanges for submitting application formsX X X X Extracts X X X X X X X X Extracts X X X X ..... stors in small towns. To achieve this, in addition to the existing IPO process, I propose to make it mandatory for companies to issue IPOs of ₹ 10 crore and above in electronic form through nationwide broker network of stock exchanges" 2. Pursuant to the above, in consultation with various market participants, SEBI has decided to introduce an additional mechanism for investors to submit application forms in public issues using the stock broker ("broker") network of Stock Exchanges, who may not be syndicate members in an issue. 3. This mechanism can be used to submit ASBA as well as non-ASBA applications by investors. 4. Stock Exchanges shall provide for download of application forms on their websites/broker terminals, so that any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 10. All intermediaries are advised to take necessary steps to ensure compliance with this circular. 11. This circular shall be applicable for all offer documents filed with Registrar of Companies on or after January 01, 2013. 12. This circular is issued in exercise of powers conferred under Section 11 of the Securities and Exchange Board of India Act, 1992. 13. This circular is available on SEBI website at www.sebi.gov.in under the categories "Legal Framework" and "Issues and Listing". Yours faithfully, Sunil Kadam General Manager +91-22-26449630 [email protected] Annexure A Details of the mechanism Step 1: Investor to submit the application form to any registered broker (non-syndicate member) and broker to upload the bid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall deposit the cheque in any of the bank branch of the collecting bank in the broker centre c) Brokers shall also update the electronic schedule (containing application details including the application amount) as downloaded from Stock Exchange platform and send it to local branch of the collecting bank d) Brokers shall retain all physical applications initially and send it to Registrar to Issue ("RTA" or "Registrar") after 6 months Step 2A: In case of ASBA application, broker to forward a schedule along with application form to respective ASBA Branch Broker shall forward a schedule (containing application number and amount) along with application forms to the branch named for ASBA of the respective self certified syndicate banks (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Stock Exchange shall discuss and determine the commission that shall be payable to the non-syndicate member e) The commission that shall be payable to the non-syndicate member shall be disclosed upfront in the offer document f) In order to determine to which syndicate or non-syndicate broker commission is payable to, the terminal from which the bid has been uploaded will be taken into account g) Quantum of commission payable shall be determined not on the basis of allotment, but on the basis of applications which have been considered eligible for the purpose of allotment h) Based on the total commission payable to the non-syndicate broker as calculated by the RTA, Issuer shall disburse the amount to the Stock Exchange before listing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation forms to the branch named for "Syndicate ASBA" of the respective SCSBs for blocking of fund. Collecting banks/Designated branches may not accept bid schedule, bid applications and payment instrument, after T+2 days. Collecting banks to commence clearing of payment instruments. SCSBs to start blocking funds. Registrar to give bid file received from the stock exchanges containing the application number and amount to all the collecting banks/SCSBs who may use this file for validation/reconciliation at their end. Registrar to commence validation of the electronic bid details with depositories records for DP ID, Client ID and PAN. T+2 5. Registrar to continue validation of the electronic bid details with depositories records. Colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctions to collecting banks/SCSBs. Collecting banks/SCSBs to credit the funds in Public Issue Account of the issuer and confirm the same. Issuer to make allotment. Registrar to give instruction to depositories for credit of shares to successful allottees. Registrar to receive confirmation for pre-issue capital lock-in from depositories. T+9 12. Issuer and registrar to file allotment details with designated stock exchange(s) and confirm all formalities are completed except demat credit and refund. Registrar to complete refund dispatch. Registrar to issue bank-wise data of allottees, allotted amount and refund amount to collecting banks/SCSBs. T+10 13. Registrar to receive confirmation of demats credit from depositories and submit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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