Additional Payment Mechanism (i.e. ASBA, etc.) for Payment of Balance Money in Calls for partly paid specified securities issued by the listed entity

Last updated: 09 December 2020

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Quick Summary

The Securities and Exchange Board of India (SEBI) has introduced additional payment mechanisms for making subscription and paying calls on partly paid specified securities. These new channels, including online and physical ASBA through Scheduled Commercial Banks (SCSBs) and intermediaries like Trading Members, aim to make the process more investor-friendly and reduce grievances. The payment period for these calls will be fifteen days, and the circular is effective for all call money notices where the payment period opens on or after January 01, 2021.

Securities and Exchange Board of India CIRCULAR SEBI/HO/CFD/DIL1/CIR/238/2020 December 08, 2020 To All Listed Entities All Recognized Stock Exchanges Dear Sir/Madam, Sub:Additional Payment Mechanism (i.e. ASBA, etc.) for Payment of Balance Money in Calls for partly paid specified securities issued by the listed entity 1. SEBI, in its endeavour to protect investors interest and reduce investor grievances relating to refund, introduced Application Supported by Blocked Amou

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FAQ :

The circular introduces additional payment mechanisms, such as ASBA, for paying the balance money on calls for partly paid specified securities issued by listed entities.

The new channels include online ASBA via an SCSB's portal, physical ASBA at an SCSB branch, and an additional online mode using linked trading, demat, and bank accounts (3-in-1 accounts) offered by brokers.

The payment period for making the balance money payment in calls will be kept open for fifteen days.

This circular shall be applicable for all Call Money Notices where the payment period opens on or after January 01, 2021.

Intermediaries, including the issuer company and its Registrar and Transfer Agents (RTAs), shall provide necessary guidance to specified security holders on using the ASBA mechanism when making payments for calls.