“We are introducing electronic IPO (e-IPO) from January 1 with 100% ASBA (application supported by bank account). So, if you're applying for IPO, there will be no debit from your account until the allotment is made. Debit will be only to the extent of amount allotted,” said U K Sinha, Chairman of Sebi, at an event held in Mumbai.
Sebi had earlier approved the e-IPO norms in June 2015. According to the new e-IPO norms companies raising funds in primary market will have to list its shares within six days, which was previously 12 days. Moreover, with ASBA, investors’ money will remain in their bank accounts till the allotment of shares in the IPO, which will help the investors to avert problems and time spent in getting refunds.
Under the e-IPO norms, depository participants and RTAs (registrar and transfer agents) will also be able to accept IPO applications both in physical form and electronic form.
Since April 2015, the market regulator has approved IPOs worth Rs. 18,000 crore, which is more than double as compared to IPOs of Rs. 9,500 crore approved by Sebi in previous fiscal.