Securities and Exchange Board of India (SEBI)
new Delhi:
On Wednesday, market regulator Sebi decided to reduce the time limit for returning investors’ money to four days. Under this, if the investor does not get the minimum number of related shares or the issuer of the issue fails to get listed from the stock exchanges or get the approval of the business, he will have to return the investors’ money in four days. Currently, if the investor does not get the minimum subscription (shares), the issuer has to return the entire money within 15 days of closing the issue. On the other hand, if the company issuing the issue fails to get approval from the stock markets for listing or trading, it has to return all the money of the investors within seven days of the notification of the cancellation of the application from the stock market.
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This deadline has been reduced to four days. Considering that the time limit has been reduced, ASBA (Application Supported by Blocked Amount) is now mandatory for all applicants in a public issue. Under this arrangement, the application money is not transferred, rather it is ‘withheld’ in the account of the investor. The amount is taken only after the share allotment. Further, after the UPI (Unified Payments Interface) arrangement in the public issue, if the intermediaries do not release the respective amount in the ASBA account within four working days from the date of closure of the issue, they will be liable to compensate the investors. The Securities and Exchange Board of India (SEBI) said, “After consultation with market participants, it has been decided to reduce the time frame for returning investors’ money to four days.”
(This news has not been edited by the NDTV team. It has been published directly from the Syndicate feed.)