| Notification Detail :
CIR/CFD/DIL/12/2012 September 13, 2012
To
All Registered Bankers to an Issue
Dear Sir/Madam,
Sub: Application Supported by Blocked Amount (ASBA) facility in public/ rights
issue
1. This has reference to SEBI Circular No. SEBI/CFD/DIL/ASBA/1/2009/30/12 dated
December 30, 2009, on the captioned subject.
2. It has come to our notice that some banks while making applications on own account
using ASBA facility are doing so without having clear demarcated funds and that some
banks are marking lien against credit limits / overdraft facility of their account holders’ for
ASBA applications.
3. Self Certified Syndicate Banks (SCSBs) are hereby advised to ensure that for
applications made by any investor using ASBA facility, the SCSBs shall block the
application amount only against/in a funded deposit account and ensure that clear
demarcated funds are available for ASBA applications.
4. SCSBs are also advised to ensure that for making applications on own account using
ASBA facility, they should have a separate account in own name with any of the SEBI
registered SCSBs. Such account shall be used solely for the purpose of making
application in public issues and clear demarcated funds should be available in such
account for ASBA applications.
5. This circular shall come into force with immediate effect.
6. This circular is issued in exercise of the powers conferred under Section 11 read with
Section 11A of the Securities and Exchange Board of India Act, 1992.
7. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Issues and Listing”.
Yours faithfully,
Harini Balaji
Deputy General Manager
+91-22-26449372
harinib@sebi.gov.in
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