Sebi asks collecting bankers to send issue details in seven days

Our Markets Bureau

Mumbai, May 22: THE Securities and Exchange Board of India (Sebi) has asked the registered bankers to (public) an issue to ensure that the details of subscriptions and the final certificate are furnished to the registrars to the issue, lead manager and the respective company within seven working days after the closure of the issue.

The instructions to be applicable to all issues, including book building issues, opening on and from June 1, 2001, were intended to better facilitate the companies, lead managers and registrars to an issue to adhere to the maximum specified period for allotment and an endeavour to reduce the time between closure of the issue and listing of securities, Sebi said in a circular.

“You are advised to ensure that appropriate systems, procedures and infrastructure are in place at the collecting and controlling branches for compliance with the above (instruction),” Sebi said. Earlier, there was no such formal ceiling in force for bankers to an issue.

The registrar to the issue would be able to finalise the basis of allotment of securities only on timely receipt of details of collection figures, the applications and the application money received.

The Sebi (Disclosure and Investor Protection) Guidelines, 2000 specify a maximum period of 30 days for allotment after the closure of the issue. For book built issues the allotment is required to be done within 15 days of issue closure.

Non-compliance of these instructions would attract penal action extending to suspension as bankers to an issue under Sebi Act 1992 and Sebi (Bankers to an Issue) Rules and Regulations 1994.