The Securities and Exchange Board of India, vide its notification dated 30th May 2022, has tightened the framework for bidding in an initial public offering. The ASBA applications in Public Issues shall be processed only after the application monies are blocked in the investor’s bank accounts.
Accordingly, all intermediaries/market infrastructure institutions are advised to ensure that appropriate systemic and procedural arrangements are made within three months from the date of issuance of this circular.
Further, the Stock Exchanges shall accept the ASBA applications in their electronic book building platform only with a mandatory confirmation on the application monies blocked.
