In what could sound even more better news coming out from the market regulator to retail investors, Sebi has decided to cut down the timeline for listing, besides making Applications Supported by Blocked Amount (ASBA) mandatory for all kinds of investors while applying for an initial public offering (IPO).
“Presently, more than 99.5 per cent applications are received from centres where ASBA facility is available. Based on an analysis of a few public issues, in terms of amount, ASBA applications account for 99.9 per cent of the total bid amount received from all investors. Considering the reach and advantages of ASBA, it shall now be mandatory for all investors to make ASBA applications,” Sebi said.
To help intermediaries and banks to modify their existing systems and train their staff, and also enable the investors to adapt to the new system, there will be six months.
Published 23 June 2015, 18:34 IST