Ref. LIST/COMP/71/2020-21

Dear Sir\Madam,

SEBI Circular No. CIR/DDHS/P/121/2018 dated August 16, 2018 (hereinafter to be referred as ‘ASBA Circular’) lays down the process for payment for applications in public issue of debt securities through the facility of ASBA.

After consultation with stakeholders, it has been decided to introduce the following in addition to the already specified modes under the ASBA Circular:

·         Providing an option to investors to apply in public issues of debt securities through the app / web interface of Stock Exchange(s) with a facility to block funds through Unified Payments Interface (UPI) mechanism for application value upto Rs. 2 Lac;

·         Permitting the UPI mechanism to block funds for application value upto Rs. 2 Lac submitted through intermediaries (Syndicate members, Registered Stockbrokers, Registrar and Transfer agent and Depository Participants).

The process flow for applying through online interface of stock exchanges or intermediaries and availing the option of blocking funds though UPI mechanism is placed at Annex I to this Circular.

The provisions of this circular shall be applicable to a public issue of securities under the captioned Regulations which opens on or after January 01, 2021. Stock Exchanges, NPCI, Sponsor Banks and Self Certified Syndicate Banks shall make required changes to implement the same from January 1, 2021. SEBI Circular no. CIR/IMD/DF-1/20/2012 dated July 27, 2012 shall stand repealed from that date.

The aforesaid circular is attached for reference.

Listed Companies are requested to take note and comply accordingly.  

Ashok Kumar Singh Assistant General Manager Listing Compliance

Nisha Mehta   Manager Listing Compliance

November 25, 2020