The Securities and Exchange Board of India (Sebi) on Tuesday said that the regulator is working closely with the Reserve Bank of India (RBI) and bankers for the smooth roll-out of initial public offer
The Securities and Exchange Board of India (Sebi) on Tuesday said that the regulator is working closely with the Reserve Bank of India (RBI) and bankers for the smooth roll-out of initial public offer (IPO) through the Application Supported by Blocked Amount (ASBA) facility on a nationwide basis for all bidders from January 1, 2016.
The move is aimed at bringing down the number of days between the IPO closing and it’s listing to six days from the current 12 days. Under ASBA, an investor’s money would remain blocked in his account and would get debited only upon the allotment of shares.
This facility was made mandatory for all institutional investors and high net-worth investors. In July, this year, Sebi issued fresh guidelines making ASBA mandatory for all bidders including retail investors from the beginning of 2016.
“The new norms will kick-in from January 1. We have discussed this issue with the Reserve Bank of India and the Indian Banks Association as bankers need to be trained for ASBA,” said U.K. Sinha, chairman, Sebi while delivering the keynote address at a conference organised by the Association of Investment Bankers of India (AIBI), an umbrella body of merchant bankers.
Meanwhile, the Sebi chief further added that the regulator along with Small Industries Development Bank of India (SIDBI) and stock exchanges are conducting road shows to meet and understand the issues faced by startups in India.
Sebi had come out with a separate set of regulations for the fund raising and listing by startup’s in India. However, not a single startup has come forward to list its shares in domestic bourses.
