OTCEI Circular No: CIR/CFD/DIL/8/2010 (12-Oct-2010) Applications Supported By Blocked Amount (ASBA) Facility in Public Issues

CIR/CFD/DIL/8/2010

To All Stock Exchanges

To All Registered Merchant Bankers

To All Registered Registrars to an Issue

To All Registered Bankers to an Issue

Dear Sirs

1. On review of progress of ASBA facility and with a view toenhance the role of ASBA in public issues, it has been decided thatsyndicate / sub-syndicate members may procure ASBA forms from theinvestors and submit it to Self Certified Syndicate Banks(SCSBs).

2. Syndicate / sub-syndicate members would be required to uploadthe bid and other relevant details of such ASBA forms in thebidding platform provided by the stock exchanges and forward thesame to the respective SCSBs. SCSBs shall carry out further actionfor such ASBA forms such as signature verification, blocking offunds etc. and forward these forms to the registrar to theissue.

3. Accordingly, in partial modification of SEBI circular numberSEBI/CFD/DIL/MB/IS/5/2009/05/08 dated August 5, 2009, the syndicate/ subsyndicate members shall now be entitled for selling commissionfor ASBA forms procured by them in the same manner as for non-ASBAforms. SCSBs shall be entitled for per form processing fee for ASBAforms procured by syndicate / subsyndicate members and submittedwith SCSBs. For ASBA forms procured directly by SCSBs, they wouldbe entitled for selling commission only and no processing fee shallbe paid to them.

4. Merchant Bankers shall ensure that an appropriate disclosureis made in the offer document specifying the range of fee thatSCSBs would be entitled to for processing such ASBA forms procuredby syndicate members/ sub-syndicate members and submitted toSCSBs.

5. The above would require some modification in existingprocesses and systems which shall be communicated in duecourse.

6. All intermediaries are directed to comply with theinstructions contained in this circular.

7. This circular shall be applicable with immediate effect forRed Herring Prospectus/Prospectus to be filed with Registrar ofCompanies on or after the date of this circular.

8. This circular is issued in exercise of the powers conferredunder Section 11 read with Section 11A of the Securities andExchange Board of India Act, 1992.

9. This circular is available on SEBI website at www.sebi.gov.inunder the categories "Legal Framework" and "Issues andListing".

Yours faithfully,

Sanjay Purao

Deputy General Manager