Amid concerns being raised in some quarters on the new ASBA (applications supported by blocked amounts) system for IPOs, regulator SEBI on Friday said the norms have been put in place after consultations with all the stakeholders and the new mechanism appears to be working well.
From January 1, ASBA facility has been made mandatory for all categories of investors applying for public issues. It keeps the bid amount blocked in the applicant’s account till the allotment of shares. While the new system has been hailed as a major investor-friendly move, some market intermediaries have complained of difficulties regarding implementation of ASBA, including problems at the bankers’ end.
In this regard, SEBI’s Whole Time Member Prashant Saran said, “… if there are pain points, we will address those issues.”
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