MUMBAI: SEBI has finalised the guidelines that would allow a retail investor investing in an initial public offering to pay only to the extent of shares allotted to him and not pay 100% upfront advance for shares applied, as is the current norm.
To this extent, it has amended the SEBI (Disclosure and Investor Protection) Guidelines, 2000). The payment system, called Application Supported by Blocked Amount (ASBA), will require retail investors bidding at a cut-off price, to apply through self-certified syndicate banks (SCSBs), in which they have accounts.
SEBI, in a circular issued on Wednesday, highlighted the eligibility criteria for an investor and also identified the roles and responsibilities of other intermediaries, registrars, merchant bankers and stock exchanges in the ASBA process.
To this extent, it has amended the SEBI (Disclosure and Investor Protection) Guidelines, 2000). The payment system, called Application Supported by Blocked Amount (ASBA), will require retail investors bidding at a cut-off price, to apply through self-certified syndicate banks (SCSBs), in which they have accounts.
SEBI, in a circular issued on Wednesday, highlighted the eligibility criteria for an investor and also identified the roles and responsibilities of other intermediaries, registrars, merchant bankers and stock exchanges in the ASBA process.
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(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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