BSE, NSE websites to host Asba forms for public issues

The Securities and Exchange Board of India (Sebi) has decided to have forms for the Applications Supported by Blocked Amount (Asba) facility in public issues available for downloading and printing from the websites of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The Asba forms downloaded from these websites will be numbered and can be used for applying in public issues opening on or after July 19, Sebi said in a circular on Tuesday.

In the Asba route, the money is blocked in the bank account of an investor who has bid for a public issue and is debited depending on the allotment he/she gets. The market regulator introduced this facility in July 2008 for retail investors and subsequently extended it to all categories of investors.

For the stock exchanges to fill essential details of an issue in the Asba forms, merchant bankers will have to provide details like the company name, type of issue, issue opening and closing dates, price/price band, bid lot, soft copy of prospectus and other relevant details at least two days before opening of the issue.

Stock exchanges will have to make an Asba form for a specific public issue on their websites at least a day before opening of the issue.

For revisions of bids, investors will also be able to take the print of a bid revision form from the stock exchange websites.

Sebi has also directed merchant bankers and self certified syndicate banks (SCSBs) to provide a hyperlink to BSE or NSE websites for this facility on their websites.

Sebi has been trying to popularise the Asba route in public issues. It use has helped in reducing issue timelines and removes the need for refund of application money.