The Securities and Exchange Board of India vide its notification dated 8th December 2020 in order to protect investors’ interest and reduce investor grievances relating to refund has introduced Application Supported by Blocked Amount (ASBA) as the sole payment mechanism in the IPO and Rights issues.
The additional payment mechanism has been introduced for making subscription and/or payment of calls in respect of partly paid specified securities through SCSBs and intermediaries such as trading members/ brokers – having three in one type account and Registrar and Transfer agents (RTA)
The payment period for payment of balance money in Calls shall be kept open for fifteen days and the intermediaries including the issuer company and its RTA shall provide necessary guidance to the specified security holders in use of ASBA mechanism while making payment of calls
This Notification shall be applicable for all Call Money Notice wherein the payment period opens on or after 1st January, 2021.
