Process of Public Issue of Equity Shares and Convertibles – Extension of Time for Phase II of UPI with ASBA

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Dec 30, 2019

Process of Public Issue of Equity Shares and Convertibles – Extension of Time for Phase II of UPI with ASBA

SEBI had, through circular dated November 1, 2018, introduced the use of Unified Payments Interface (‘UPI’) as a payment mechanism with Application Supported by Blocked Amount (‘ASBA’) for applications in public issues by retail individual investors (‘RII’) through intermediaries with effect from January 1, 2019 (which is being implemented in a phased manner). Thereafter, Phase II was implemented with effect from July 1, 2019, where, for applications by RII through intermediaries, the process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks for blocking of funds was discontinued and only the UPI mechanism with existing timeline of T+6 days (where T is the issue closing date) was mandated for a period of 3 months or floating of 5 main board public issues, whichever is later. SEBI has now, through its circular dated November 8, 2019, extended the timeline for implementation of Phase II till March 31, 2020 and has revised the timelines for existing T+6 environments.

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