SEBI has issued a circular for streamlining the process of IPO’s with UPI in ASBA and redressal of investor grievances

Mar 17, 2021 | by Avantis RegTech Legal Research Team

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Secretarial Compliance

The Securities and Exchange Board of India (SEBI) on March 16, 2021 has issued a circular for streamlining the process of IPO’s with UPI in ASBA and redressal of investor grievances. The need has been felt to put in place measures to have a uniform policy and to further streamline the reconciliation process among intermediaries/SCSBs.  

The following mechanism has been provided to the investors: 

• Lead Manager is the nodal entity for any issues arising out of a public issuance process and the timelines, processes and compensation policy defined in this circular shall form part of the agreement(s) that shall be signed among the intermediaries.

• Lead Managers shall ensure the adherence of timelines, processes and compensation policy by intermediaries. 

• SCSB’s shall identify the nodal officer for IPO applications processed through UPI as a payment mechanism and shall be submitted to SEBI within 7 days. 

• SCSBs shall send SMS alerts for mandate block and unblock. 

• For ease of doing business, Sponsor Banks shall host a web portal for intermediaries (closed user group) from the date of IPO opening till the date of listing with details of statistics of mandate blocks/unblocks, performance of Apps and UPI Handles, down-time/network latency (if any) across intermediaries and any such processes having an impact/bearing on the IPO bidding process.

• To avoid duplication, the facility of re-initiation provided to Syndicate Members shall preferably be allowed only once per bid/batch and as deemed fit by the concerned Stock Exchange, after bid closure time.

• Registrars to an Issue (RTI) shall submit the details of cancelled/withdrawn/deleted applications to SCSB’s on daily basis within 60 minutes of bid closure time from the Issue opening date till Issue closing date (T) by obtaining the same from Stock Exchanges.

• Sponsor Banks shall execute the online mandate revoke file for Non Allottees /Partial Allottees on BOA+1.

• Subsequently, RTI shall submit the bank-wise pending UPI applications for unblock to SCSB’s along with the allotment file, not later than 02:00 PM on BOA+1.

• SCSB’s shall ensure that the unblock for non-allotted/partial-allotted applications is completed by the closing hours of bank day on BOA+1. SCSB’s shall submit the confirmation on the same, to Lead Managers and RTA, not later than BOA+1.

[Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M]



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