First phase of e-IPO facility by Jan 2013

Market regulator Sebi on Friday said that e-IPO facility, which would allow retail investors to submit their bids electronically for initial public offer shares, would be implemented in two phases, with 400 locations to be covered in the first phase by Januuary 1, 2013; the remaining 600 locations would be covered in the second phase by March 1, 2013. It will be applicable for all offer documents filed with Registrar of Companies on or after January 1, 2013.

The move is part of Sebi's efforts to provide retail investors an additional mechanism to submit application forms in public issues using the stock broker network of the exchanges, who may not be syndicate members in an issue.This mechanism can be used to submit ASBA (Application Supported by Blocked Amount) as well as non-ASBA applications by investors. Stock exchanges would have to ensure that the information relating to price band is pre-filled in such forms.

The bourses have also been asked to list the details of locations including name of the broker, contact details of contact person, postal address, telephone number, e-mail address of the broker, where the application forms shall be collected at least 15 days in advance.

All accepted applications shall be stamped and thereby acknowledged by the broker at the time of receipt and will be uploaded on the stock exchange platform.

Brokers will be responsible for uploading the bid, banking the cheque, submitting forms and liable for any failure in this regard, Sebi said.

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