This is in continuation of notice no. 20201130-2 and 20220413-28 dated Nov 30, 2020 and Apr 13, 2022 respectively, Intermediaries (viz. syndicate members, registered stock-brokers, registrar to an issue and transfer agent and depository participants) and Self Certified Syndicate Banks (SCSBs) are requested to note that Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/128 and 142 dated Sept 24, 2024 and Oct 18, 2024 respectively (copies attached – Annexure I & II) has decided that all individual investors applying in public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments through intermediaries (viz. syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants) where the application amount is upto Rs. 5 Lakh, shall only use UPI for the purpose of blocking of funds and provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries.
Further, individual investors shall continue to have the choice of availing other modes (viz. through SCSBs, the facility of linked online trading, demat and bank account (3-in-1 type accounts), and Stock Exchange Platform) for making an application in the public issue.
The provisions of the aforesaid circulars shall be applicable to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments opening on or after November 01, 2024.
In accordance with the above circulars, the Exchange has made the necessary changes in its iBBS platform (internet base book building software of BSE). The following changes shall be applicable effective from Nov 1, 2024 (for issue opening on or after Nov 1, 2024):
· Intermediaries will be restrained to place the bid on iBBS platform (iBBS – Internet based Book Building Software of BSE) for bid-cum-application of Individual Investor with details of investor’s bank account for blocking of funds (Intermediary/ Syndicate ASBA) for application amount upto Rs. 5 Lakh
· Intermediaries shall mandatorily use UPI id for blocking of funds while placing the bid on iBBS platform for bid-cum-application of Individual Investor for application amount upto Rs. 5 Lakh
Intermediaries are requested to note that there is no change in the existing process for bidding through iBBS platform for bids except above.
Trading Members with 3-in-1 accounts facility (electronic connectivity with bank, depository and trading activities) will have both options to place the bid for bid-cum-application of Individual Investor with details investor’s bank account (Intermediary/ Syndicate ASBA) as well as UPI id for blocking of funds on iBBS platform for application amount upto Rs. 5 Lakh.
SCSBs are requested to note that there is no change in bidding process through iBBS platform for banks.
Trading Members, SCSBs and all intermediaries are requested to provide necessary guidance to their investors in use of UPI while making applications in public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments.
Trading Members, SCSBs and all intermediaries are requested to contact/ write us on the following email ids for any further details/ clarifications:
Activities
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Email ID
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Regulations & Business Rules
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listing.sales@bseindia.com
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Functionality of IBBS Platform
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ibbs.ops@bseindia.com
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Rinkesh Gaikwad Mangesh Tayde
Assistant Manager Deputy General Manager
Listing Business Relations Listing Business Relations
October 21, 2024. |