According to the proposal, retail investors who want to apply at the cut-off price of an IPO can apply at designated branches of banks holding a Sebi registration. The process, known as applications supported by blocked amounts (ASBA), will require retail investors bidding at the cut-off price to apply through self-certified syndicate banks (SCSBs), banks that comply with conditions laid down by Sebi.
Investment bankers believe that investors will have to bank with the banks that hold a valid registration certificate as a banker to the issue under Sebi (Bankers to an Issue) Regulations, 1994, which will result in more business for banks. "Since banks have traditionally not been involved in the actual process
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