ASBA Mandatory For Non-Retail Investors; Market Entities To Get Five-Year Licence Initially

SEBI has made ASBA compulsory for all non-retail investors (Qualified Institutional Buyers and Non-Institutional Investors) making applications in IPO/rights issues, with effect from May 1, 2011.

Under ASBA (Application Supported by Blocked Amounts) facility, investors can bid for shares while the money remains in his/her bank account and gets debited only after allotment of the shares. The facility eliminates any delays related to refunds for the unallotted shares.

Sebi had introduced ASBA facility for public offers first in September 2008, when retail investors were allowed to invest through this facility. The move avoids the investors' money getting blocked between the time of bidding for shares and final allotment.

Initially, the facility was offered to retail investors only and was given to other investors in 2009. However, it is not yet mandatory for retail investors to use ASBA facility.

SEBI has also decided that henceforth, all the intermediaries (brokers, sub-brokers, merchant bankers, mutual funds and registrars) will be required to initially register for five years after which, renewal of their performance will be done and then a permanent registration will be given to all of these intermediaries. As of now the intermediaries were required to renew their registrations on an ongoing basis.

Additionally, in an effort to protect small shareholders in listed companies, Sebi will recommend to the MCA to disallow interested shareholders from voting on the special resolution of the prescribed related-party transaction.

This view was taken based on the amalgamation between Maytas and Satyam, where questions were raised whether Satyam shareholders, who are interested in the transaction should be allowed to vote.

In the Satyam case, the board members, including the nominees of promoters, had decided to acquire two companies - Maytas Infra and Maytas Properties - promoted by the family members of Raju family, the promoters of the IT firm.

The SEBI board also decided that the currency derivative segment would have self clearing members and they would be required to have net worth of Rs 5 crore.

Reference: SEBI

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February 18, 2011 09:47 PM

MESSAGE FROM MR.AHMED ON INVESTMENT. Good Day, I am writting this letter with due respect and heartful of tears since we have not known or met ourselves previously. I am asking for your assistance after getting your contact from a reliable source.I want to find out if it's possible for you to deal with individual as to investment. In deed I am the Son of Late MR.Ahmed Suleman from Sierra Leone,I and my sister is presently staying in Benin Republic as Refugees, my Father was one of the Ministers of Johnny Paul Koromah' s regime in Sierra Leone . During the intervention of the ECOMOG Soldiers to Restore the presidency of Alhaji Tejan KABBAH from Johnny Koromah, my father was among the 23 executed Ministers. As our breadwinner is dead (my father and my mother)then our staying in Sierra Leone is no more safe,my contact to you now is to seek your assistance in the area of my future investment and also for a help hand over some huge amount of money my father deposited with a private finance company in Benin Republic. This money (US$15 Million)is deposited in a finance company in Benin Republic Cotonou some years ago by my Father and he made me the sole beneficiary . I am now asking you to stand on my behalf to claim the deposit from the security company and assist me on investing it as well in your country. I have made up my mind to offer you 27% of the total money and I also map out 5% for any expense that will be made during the transaction while the remaining will go into a productive investment. As I have mention earlier I will make the procedure to this transaction to be well know to you,if I am given the opportunity to do so. Please if you are ready to assist me,send me your full name and contact address with your phone number as you reply to this mail. 1.Your full names and Office or residential address... 2.Private telephone and fax numbers..... Best regards, Ahmed Fatai - Posted by Ahmed Fatai Recommended by 0 Readers