Sebi to extend Asba to HNIs, corporates

Sebi to extend Asba to HNIs, corporates

Mumbai: India’s capital market regulator Securities and Exchange Board of India, or Sebi, said the reach of Application Supported Blocked Amount (ASBA) will be now extended to investor categories such as high net worth individuals (HNIs) and corporate investors (referred as ASBA Phase II).

ASBA,is a system wherein the application money for initial public offers (IPOs) and rights issues remains blocked in the bank account of the investor until final allotment of shares. The new norm is applicable to all issues beginning January 2010.

Mint had first reported the development on 2 December.

Following the new norms, all investors bar qualified institutional buyers (QIBs) will be eligible to apply for public and rights issues using this facility. Restriction that were placed as part of ASBA Phase I such as that only retail investors could apply, that there could only be one bid which could not be revised, among others – will be eliminated under ASBA Phase II. ASBA

The application forms for payment under ASBA Phase II must be submitted to banks whose names appear in the list of self-certified syndicate banks (SCSBs) on the SEBI website. ASBA I has so far been implemented an almost 20 issues.