The capital markets regulator Securities and Exchange Board of India (Sebi) said that ASBA (Application Supported by Blocked Amount) applications in public offerings will be completed only after the application money has been blocked in the investor's bank accounts.
The new standards would apply to public offerings that begin on or after September 1, 2022, according to a circular issued by the Sebi. The regulator stated, "Stock exchanges shall accept ASBA applications in their electronic book building platform only with a necessary confirmation on the application monies banned."
This will apply to all types of investors, including retail, qualified institutional buyers, non-institutional investors, and other reserved groups, as well as all application processing methods. Sebi prescribed the ASBA facility in public issues for all categories of investors except Qualified Institutional Buyers (QIBs) in December 2009, and the regulator expanded it to QIBs in May 2010.
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