Sebi proposes alternative payment mode for share issue ~ IPO India: IPO News India, Latest IPO News from Share Market India, Indian IPO News

Thursday, May 22, 2008

Sebi proposes alternative payment mode for share issue

The Securities and Exchange Board of India, or Sebi, has proposed an alternative payment mode for share issues, reports CNBC-TV18. The proposed ASBA, or Applications Supported by Blocked Amount, system will allow application money to stay in investors' accounts till finalization. Retail investors bidding at the cut-off price can apply through SCBs. Self certified syndicate banks would accept applications and block funds.

SCBs will unblock funds on finalisation of share allotment.

Source: Moneycontrol.com

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