PR No.246/2009
Payment of commission for ASBA in issue process
SEBI, while reviewing the Application Supported by Blocked Amount (ASBA) process, noted that one of the reasons for poor response to ASBA is lack of incentive for Self Certified Syndicate Banks (SCSBs) to do the assigned task of accepting ASBAs. It was noted that while commission is being paid for non-ASBA applications, no commission was being paid for ASBA applications.
SEBI, vide circular dated August 5, 2009, has clarified that in a public issue, both the type of applications i.e. ASBA applications (uploaded by Self Certified Syndicate Banks) as well as non-ASBA applications (uploaded by Syndicate Members), shall be treated on par for the purpose of payment of commission and the commission shall be paid accordingly to Self Certified Syndicate Banks or Syndicate Members as the case may be.
The full text of the Circular is available on SEBI website at www.sebi.gov.in
Mumbai
August 5, 2009