Market watchdog the Securities and Exchange Board of India (Sebi) today asked the bourses to make available on their websites ASBA forms, a new route for public issues wherein investors' money is not blocked unless shares are allocated to them.
"It has been decided to make ASBA bid-cum application forms available for download and printing from websites of the stock exchanges, which provide electronic interface for ASBA facility. The ASBA forms so downloaded shall have a unique application number and can be used for making ASBA applications in public issues," the regulator said in a circular.
It should be applicable to all public issues opening on or after July 19, 2010, Sebi said, adding that the forms should be made available at least one day before opening of the offer.
Under ASBA (Application Supported by Blocked Amount) facility, deposits of public issue applicants would remain in their accounts till the shares are allotted to them.
The ASBA was first used in the public issue of 20 Microns in September last year, where around 10 per cent of the retail applicants used this facility. Last year, the ASBA facility was also used in the rights issue of Tata Motors.