Sebi looks to broaden IPO reach, plans to rope in payment banks

Considers allowing payments banks, SFBs to handle application process; decision likely in Tuesday's meeting

The Securities and Exchange Board of India (Sebi) plans to rope in payment banks to handle the application process for initial public offerings (IPOs) in order to broaden the reach of capital markets.

The regulator also plans to allow small finance banks (SFBs) to provide the so-called application supported by blocked authorisation (ASBA) for IPOs. The ASBA facility blocks the IPO application money in the bank account till the time of allotment. However, Sebi has reservations in permitting mobile wallets to be part of the IPO process, said two regulatory sources.

An announcement in this regard is expected at the