The Security and Exchange Board of India vide its notification dated 31st March 2021has decided to reduce the timelines for refund of investors’ money to four days in case of non-receipt of minimum subscription and the issuer failing to obtain listing or trading permission from the stock exchanges.
Earlier in case of non-receipt of minimum subscription, the issuer is mandated to refund all the application monies within a period of “fifteen days” from the closure of the issue. However taking into consideration the Application Supported by Blocked Amount (ASBA) has been mandated for all applicants in public issues the application money is not transferred but only blocked in the account of the investor and is debited only upon allotment and unblocked if there is no/part allotment.
