SEBI finalises rules for easier IPO investment

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.

ET Spotlight
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.
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