SEBI with a view to make the public issue process more efficient and robust has issued Clarification Circular on Streamlining the Process of Public Issue of Equity Shares and Convertibles.
The Stock exchange(s) may validate the electronic bid details with depository’s records for DP ID, Client ID and PAN, at periodic intervals throughout the bidding day during the bidding period and bring the inconsistencies to the notice of intermediaries concerned, for rectification and re-submission within the time specified by stock exchange.
Syndicate members, registered brokers of stock exchanges, depository participants (DPs) and registrars to an issue and share transfer agents (RTAs) registered with SEBI, may also forward the physical application forms received by them on day-to-day basis during the bidding period to designated branches of the respective self-certified syndicate banks (SCSBs) for blocking of funds. Such applications should be with value not more than 2 lakh.
Further, the instruction for publication of basis of allotment may be given by T+5 day so that basis of allotment is published in all the newspapers, where issue opening/closing advertisements have appeared earlier, on T+6 before the commencement of trading.
Click on the following links to get the copy of circular.
SEBI Circular 21 Jan 2016 Page1
SEBI Circular 21 Jan 2016 Page2
