Bourses can validate bid details at periodic intervals: Sebi

To ensure that public issue process is more efficient, Sebi today said stock exchanges can validate electronic bid details at periodic intervals throughout the day of bidding.
As part of streamlining the process for public issue of shares and convertibles, Sebi last November reduced the time taken for getting listed to six working days from earlier 12 from the day the offer is closed.
In a circular today, Sebi said stock exchange may validate the electronic bid details with depository's records for PAN and other details "at periodic intervals throughout the bidding day during the bidding period and bring the inconsistencies to the notice of intermediaries concerned".

Such a process would help in rectification and re-submission of bids within the time specified by stock exchanges.
"Syndicate members, registered brokers of stock exchanges, depository participants (DPs) and registrars to an issue and share transfer agents (RTAs) registered with Sebi, may also forward the physical application forms received by them on day-to-day basis during the bidding period to designated branches of the respective self certified syndicate banks (SCSBs) for blocking of funds," it said.
Such applications should have a value of not more than Rs 2 lakh.

Besides, the market regulator said the bourses may share the electronic bid file for applications with value not more than Rs 2 lakh with RTA or share transfer agent to the issue on daily basis and that in turn may be shared with each self certified syndicate banks (SCSBs).

"SCSBs may carry out the blocking of funds on a daily basis during the bidding period for such physical application forms received. Revised electronic bid file/final bid file shall be shared by the stock exchanges with RTA to the issue," the circular said.
These clarifications have been issued after discussions with market participants with an "endeavor to make the public issue process more efficient and robust".