SEBI announces e-IPO route for retail investors
04 Oct 2012
The Securities and Exchanger Board of India (SEBI) today announced that retail investors across the country will get an additional facility - the e-IPO facility - which would allow them to submit bids electronically for initial public offer of shares.
The scheme would be implemented in two phases, with 400 locations to be covered in the first phase by 1 January 2013, the market regulator said in a circular released today.
The remaining locations would be covered in the second phase by 1 March 2013, SEBI said.
Accordingly, it has been made mandatory for companies to issue IPOs of Rs10 crore and above in electronic form through nationwide broker network of stock exchanges.
This mechanism can be used to submit ASBA as well as non-ASBA applications by investors.
Stock exchanges will provide for download of application forms on their websites/broker terminals, so that any investor or stockbroker can download/print the forms directly.
