April 20, 2022
To
Recognized Stock Exchanges
Registered Stock Brokers
Registered Merchant Bankers
Registered Registrars to an Issue and Share Transfer Agents
Depositories and Registered Depository Participants
Registered Bankers to an Issue
Self Certified Syndicate Banks (SCSBs)
National Payments Corporation of India (NPCI)
Dear Sir / Madam,
1. SEBI vide Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M dated March 16, 2021 (hereinafter referred to as “the March’21 Circular”), which came into effect from May 01, 2021, had put in place measures to have a uniform policy to further streamline the processing of the ASBA applications through UPI process among intermediaries/SCSBs.
2. Vide Circular dated June 02, 2021, the implementation timelines for certain provisions of the Circular were deferred.
Redressal of Investor grievances
3. The Circular provided a mechanism of compensation to investors for delay in unblocking of application amounts by SCSBs and has prescribed certain compliance and reporting standards to be adopted by SCSBs.
4. The performance of SCSBs on timely unblocking of application amounts has been reviewed and based on the feedback received from market intermediaries, a new reporting format for Annexure IV of the March’21 Circular has been devised to capture the data of all ASBA applications unblocked by SCSBs and their corresponding date of actual unblock. SCSBs shall submit the Annexure IV of the March’21 Circular in the format prescribed in Annexure IV of this circular.
5. It is reiterated that the SCSBs shall continue to compensate the investors for delays in unblocking of application amounts as per the compensation clause provided in the March’21 Circular.
6. The compensation prescribed in the March’21 Circular shall be applicable to all ASBA applications processed by the SCSBs.
7. Paragraphs 13 and 14 of the March’21 Circular stand modified to the extent stated above.
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