Application Supported by Blocked Amount (hereinafter referred to as “ASBA”) are mentioned below for understanding the ASBA process:
1. Meaning of ASBA : ASBA means an application for subscribing to a public issue, along with an authorisation to Self Certified Syndicate Bank to block the application money in a bank account.
2. Eligibility of Investors for ASBA : All Investors are eligible to apply through ASBA in public issues. Non retail investors i.e. QIBs and Non Institutional investors shall mandatorily apply through ASBA process.
3. Self Certified Syndicate Bank (SCSB) : SCSB means a banker to an issue registered with the Board, which offers the facility of ASBA.
4. Syndicate ASBA: The Syndicate Member / Sub-Syndicate Member (Stock Brokers registered with SEBI), who procure the ASBA forms from the bidders, upload the bid and other relevant details of such ASBA forms in the bidding platform provided by stock exchanges and forward the same to the designated SCSBs. ASBA facility through Syndicate / Sub-Syndicate Member shall be available at the following bidding centers only:
i. Mumbai ii. Chennai iii. Kolkata iv. Delhi v. Ahmedabad vi. Rajkot vii. Jaipur viii. Bangalore ix. Hyderabad x. Pune xi. Baroda xii. Surat. The details of the bidding centres are given in this Bid cum ASBA Form.
5. ASBA Process in brief :
a).SCSB: An ASBA investor shall submit an ASBA Form physically or electronically through the internet banking facility, to the designated SCSB with whom the bank account to be blocked, is maintained. The SCSB shall then block the application money in the bank account specified in the ASBA, on the basis of an authorisation to this effect given by the account holder in the ASBA. The application money shall remain blocked in the bank account till finalisation of the basis of allotment in the issue or till withdrawal/ failure of the issue or till withdrawal/ rejection of the application, as the case may be. The application data shall thereafter be uploaded by the SCSB in the electronic bidding system through a web enabled interface provided by the Stock Exchanges.
b.Syndicate ASBA: An ASBA investor shall submit an ASBA Form physically to the Syndicate/Sub-Syndicate Member indicating the mode of payment option in the ASBA Form. The Syndicate ASBA shall give an acknowledgement by giving the counter foil as proof of having accepted his/ her application. However, ASBA bids through Syndicate ASBA is permitted only at the Syndicate ASBA centers. The Syndicate Member shall upload bid details and other relevant details in the electronic bidding system provided by stock exchange(s), which allows syndicate members to undertake modification of selected fields in the bid details already uploaded.
The Syndicate ASBA then forwards the ASBA Form to the designated branch of SCSB along with a schedule (containing application number, payment instrument number and amount). The SCSB shall then verify the signature and block the application money in the bank account specified in the ASBA Form, on the basis of an authorisation to this effect given by the account holder in the ASBA. The application money shall remain blocked in the bank account till finalisation of the basis of allotment in the issue or till withdrawal/ failure of the issue or till withdrawal/ rejection of the application, as the case may be. Once the basis of allotment is finalized, the Registrar to the Issue shall send an appropriate request to the CB of SCSB for unblocking the relevant bank accounts and for transferring the requisite amount to the issuer’s account designated for this purpose. In case of withdrawal/ failure of the issue, the amount shall be unblocked by the SCSB on receipt of information from the BRLM through the concerned Registrar to the Issue.
6.Obligations of the Issuer : The issuer shall ensure that adequate arrangements are made by the Registrar to the Issue to obtain information about all ASBAs and to treat these applications similar to non-ASBA applications while finalizing the basis of allotment, as per the procedure specified in the SEBI (ICDR) Regulations.
7. Applicability of ASBA process : ASBA process shall be applicable to all book-built public issues.
8. Withdrawal of Application Form : In case an ASBA bidder wants to withdraw his/ her ASBA during the bidding period, he/she shall submit his/her withdrawal request to the SCSB, which shall do the necessary, including deletion of details of the withdrawn ASBA from the electronic bidding system of the Stock Exchange(s) and unblocking of funds in the relevant bank account. In case an ASBA bidder wants to withdraw his/her ASBA after the bid closing date, he/ she shall submit the withdrawal request to the Registrar to the Issue. The Registrar shall delete the withdrawn bid from the bid file.
9. Other Information for ASBA Bidders :
1. SCSB/Syndicate ASBA shall not accept more than five applications per account per Issue to be blocked.
2. Bidder should not submit the Bid cum ASBA Form with a member of the Syndicate at a location other than the Syndicate ASBA centers.
3. SCSB/ Syndicate ASBA shall not accept any ASBA after the closing time of acceptance of bids on the last day of the bidding period.
4. SCSB/ Syndicate ASBA shall give ASBA bidders an acknowledgment for the receipt of ASBAs.
5. SCSB/Syndicate ASBA shall not upload any ASBA in the electronic bidding system of the Stock Exchange(s) unless –
(i) it has received the ASBA in a physical or electronic form; and
(ii) it has blocked the application money in the bank account specified in the ASBA or has systems to ensure that Electronic ASBAs are accepted in the system only after blocking of application money in the relevant
bank account opened with it.
6. SCSB/ Syndicate ASBA shall ensure that the details of a particular ASBA are uploaded only once in the electronic bidding system of any one of the Stock Exchange(s). SCSB/ Syndicate ASBA shall be solely responsible
for the completion and accuracy of all details entered / uploaded on the electronic bidding system of the Stock Exchange(s).
7. In case of withdrawal of bids by ASBA Bidders during the bidding period, SCSB/ Syndicate ASBA shall ensure deletion of the withdrawn ASBA from the electronic bidding system of the Stock Exchange(s) and unblocking
of funds in the relevant bank account within the timelines specified in the ASBA facility.
8. SCSB/ Syndicate ASBA shall ensure that information about revision in the bidding period or price band, as and when received, is communicated and effected to in its systems promptly, for information of ASBA Bidders.
9. SCSB/ Syndicate ASBA shall ensure that complaints of ASBA Bidders arising out of errors or delay in capturing of data, blocking or unblocking of bank accounts, etc. are satisfactorily redressed.
10. SCSB/ Syndicate ASBA shall be liable for all its omissions and commissions in discharging responsibilities in the ASBA process.
11. Registrar to the Issue shall act as a nodal agency for redressing complaints of ASBA and non-ASBA Bidders, including providing guidance to ASBA Bidders regarding approaching the concerned SCSB/ Syndicate ASBA.
12. The Stock Exchange(s) shall ensure that an issue specific code is generated from the electronic bidding system, so that SCSB/ Syndicate ASBA do not face any problem in segregating the ASBA Issue-wise.
13. In case of withdrawal of ASBA during the bidding period, the Stock Exchange(s) shall provide the facility of enabling SCSB/ Syndicate ASBA to –
(i) delete the ASBA from the electronic bidding system or mark the withdrawal individually against the original bid uploaded; or
(ii) upload withdrawal of the ASBA in batch mode, in the electronic bidding system
