Capital markets regulator Sebi on Wednesday streamlined the cost of processing charge by way of the Unified Payments Interface (UPI) system for shares utilized for and allotted throughout an preliminary public providing (IPO).
In addition, the regulator has devised a brand new reporting format for capturing the information of all ASBA (Application Supported by Block Amount) purposes unblocked by Self Certified Syndicate Banks (SCSBs) and their corresponding date of precise unblock.
The new format has been put in place after reviewing the efficiency of SCSBs on well timed unblocking of utility quantities and suggestions acquired from market intermediaries, Sebi mentioned in a round.
To declare the processing charge, SCSBs must make an utility to the service provider bankers with a replica to the Registrar to the Issue within the prescribed format.
This is topic to sure situations, together with the appliance being made no later than 30 days from the finalisation of foundation of allotment by Registrar to the Issue.
Further, SCSBs must make the appliance solely after unblocking of utility quantity and paying the relevant compensation referring to investor complaints.
The SCSBs will proceed to be accountable to supply data requested by the service provider bankers/ Registrar to the Issue/ issuer and in addition stay liable to pay compensation for delays in unblocking of utility quantities after the processing charge has been claimed by SCSBs.
“Needless to state that SCSBs are liable to face appropriate action under Securities Laws for non-compliance with the requirements of this circular,” Sebi mentioned.
With regard to SMS alert to buyers, Sebi mentioned the SCSBs/UPI apps eligible for public points will ship SMS alerts to buyers for all ASBA purposes and may present the bill within the inbox as an extra function to confirm the UPI mandate particulars.
This comes after NPCI had approached Sebi with a proposal to incorporate bill within the inbox as one of many choices for guaranteeing well timed data to buyers.
The particulars that must be despatched by way of SMS embody title of the IPO, utility quantity and date on which quantity was blocked in case of blocking of ASBA utility quantities by way of financial institution, on-line and UPI channels.
In case of debit and unblocking of ASBA utility quantities, the SMS ought to have particulars resembling title of the IPO, quantity to be debited and date on which quantity was debited in full allotment situation. In the case of non-allotment, SMS ought to have details about quantity to be unblocked and date on which quantity was unblocked.
This round will come into power with speedy impact. Provisions of this round will grow to be a part of the supply paperwork, together with draft pink herring prospectus (DRHP) and pink herring prospectus (RHP), Sebi mentioned.
In March 2021, Sebi had put in place measures to have a uniform coverage to additional streamline the processing of ASBA purposes by way of the UPI course of amongst intermediaries or SCSBs, and in addition to supply a mechanism of compensation to buyers.
Source: www.financialexpress.com”