SEBI, by way of a Circular dated March 16, 2021 (‘March 16 Circular’), had put in place measures to have a uniform policy to streamline the processing of Application Supported by Blocked Amount (‘ASBA’) applications through the Unified Payments Interface (‘UPI’) process among intermediaries / Self-Certified Syndicate Banks (‘SCSBs’). By way of a Circular dated June 02, 2021 issued by SEBI, the implementation timelines and specific provisions of the March 16 Circular were deferred. Our write-up on the March 16 Circular can be accessed here.

SEBI, by way of a Circular dated April 20, 2022, has prescribed a new reporting format to capture the data of all ASBA applications unblocked by SCSBs and their corresponding date of actual unblock. The SCSBs / UPI apps eligible for public issues will send SMS (short message service) alerts to investors for all ASBA applications. They may also provide the invoice in the inbox as an additional feature to verify the UPI mandate details. This Circular also lists specific details for blocking, unblocking and debit of the mandate that will be present in the invoice. This Circular will come into force from the date of its issuance.