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SEBI/HO/CFD/DIL2/P/CIR/2022/75 May 30, 2022
To
Registered Merchant Bankers
Recognized Stock Exchanges
Depositories and Registered Depository Participants
Registered Registrars to an Issue and Share Transfer agents
Registered Stock Brokers
Bankers to an Issue (Self-Certified Syndicate Banks - SCSBs)
National Payments Corporation of India (NPCI)
Dear Sir / Madam,
Sub: Processing of ASBA applications in Public Issue of Equity Shares
and Convertibles
1. SEBI has prescribed the facility of Application Supported by Blocked Amount
(ASBA) in Public Issues for all categories of investors except Qualified
Institutional Buyers (QIBs) vide circular SEBI/CFD/DIL/ASBA/1/2009/30/12
dated December 30, 2009. Vide circular CIR/CFD/DIL/2/2010 dated April 06,
2010, SEBI has extended the facility of ASBA to QIBs in public issues opening
on or after May 1, 2010.
2. Vide circular SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018,
SEBI introduced the use of Unified Payment Interface (UPI) as an additional
payment mechanism with ASBA for Retail Individual Investors and the same
was mandated w.e.f July 01, 2019 vide circular
SEBI/HO/CFD/DIL2/CIR/P/2019/76 dated June 28, 2019 for applications by
Retail Individual Investors (RIIs) submitted through Intermediaries.
3. The processing of ASBA applications in the Public Issues by market
intermediaries and SCSBs has been reviewed. As a part of the continuing
efforts to further streamline the bidding process and to ensure the orderly
development of securities market, a need has been felt to implement the
ASBA process in line with the aforementioned circulars.
4. The ASBA applications in Public Issues shall be processed only after the
application monies are blocked in the investor’s bank accounts. Accordingly,
all intermediaries / market infrastructure institutions are advised to ensure that
appropriate systemic and procedural arrangements are made within three
months from the date of issuance of this circular.
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5. Stock Exchanges shall accept the ASBA applications in their electronic book
building platform only with a mandatory confirmation on the application monies
blocked.
6. The circular shall be applicable for all categories of investors viz. Retail, QIB,
NII and other reserved categories and also for all modes through which the
applications are processed.
7. All stakeholders involved in the process are advised to take necessary steps
to ensure compliance with this circular. Merchant Bankers shall coordinate
with all stakeholders in this regard.
8. This circular shall be applicable for public issues opening on or after
September 01, 2022.
9. This circular is being issued in exercise of the powers under section 11 read
with section 11A of the Securities and Exchange Board of India Act, 1992.
10. This circular is available on SEBI website at www.sebi.gov.in under the
categories “Legal Framework” and “Issues and Listing”.
Yours faithfully,
Vandana Joglekar
Deputy General Manager
+91-22-26449639
Vandanaj@sebi.gov.in