Come January 1, 2016, the time taken for listing of public issues after
it has closed for subscription will be reduced from the existing 12 days
to six days.
Announcing this in a circular on Tuesday, securities and commodities
regulator SEBI, said that it would be applicable to issues opening on or
after January 1, 2016.
Investors would now have the facility of submitting application form to
subscribe to a public issue to banks, brokers, depository participants
besides registrar and transfer agents. Earlier, forms could be submitted
only through banks and brokers.
Making payments would also become easy for investors as SEBI has made
the use of ASBA (application supported by blocked amount) compulsory for
all categories of investors.
For investors, use of ASBA entails just writing their bank account
numbers and authorising the banks to make payment in case of allotment
by signing the application forms.
For investors, the benefit arises from the fact that their account is
debited only to the extent of the amount for which they have been
allotted shares. As a result issuing companies need not process refunds.
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