Thursday, July 31, 2008

New Rules For IPO By SEBI - July 31, 2008

SEBI has finalized the guidelines for retail investors for investing in IPO in which they only have to pay to the extent of shares allotted to them and not 100% upfront advance for shares.

The payment system known as Application Supported by Blocked Amount (ASBA) that will require retail investors to bid at a cut-off price and to apply through self-certified syndicate banks (SCSBs), in which they hold accounts.

SEBI on Wednesday issued a circular that highlighted the eligibility criteria for an investor and also identified the roles and responsibilities of other intermediaries, registrars, merchant bankers and stock exchanges in the ASBA process.

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