News18» News»Business»SEBI Gives More Time For Implementation of SMS Alerts For IPO Process
1-MIN READ

SEBI Gives More Time For Implementation of SMS Alerts For IPO Process

SEBI Gives More Time For Implementation of SMS Alerts For IPO Process

SEBI has prescribed a web portal to be hosted by sponsor banks for Closed User Group (CUG) entities for ease of doing business.

The Security and Exchange Board of India (SEBI) has allowed more time to implement the guidelines related to SMS alerts under the Unified Payment Interface (UPI) system for shares applied and allotted in an IPO.

Simultaneously, the deadline for setting up an automated web portal with respect to Initial Public Offerings (IPOs) through the UPI system has also been extended by SEBI. This extension was announced by SEBI after stakeholders approached the regulator seeking additional time for implementing the system changes in the wake of prevailing uncertainty due to the COVID-19 pandemic.

In a circular issued on Wednesday, the SEBI said that the new rules for automated web portals will come into force from October 1, 2021 whereas the rules related to SMS alerts will be effective from January 1, 2022. Earlier, the new arrangement was scheduled to be effective from May 1, 2021 for the upcoming IPOs.

Commenting upon SMS alerts, SEBI has said that Self Certified Syndicate Bank (SCSB) will have to continue to send SMS alerts during the actual block/debit/unblock of Unified Payment Interface (UPI) mandate in the prescribed format. The details regarding the total number of shares applied, allotted or non-allotted will be included in SMS for public issues opening from January 1, 2022, the regulator said.

SEBI has prescribed a web portal to be hosted by sponsor banks for Closed User Group (CUG) entities for ease of doing business. SEBI has said that the portal should have details of statistics of mandate blocks/unblocks, the performance of apps and UPI handles, down-time/network latency (if any) across intermediaries.

According to the regulator, any such processes will have a bearing on the IPO bidding process.

For exceptional cases like technical issues with UPI handles, it will be intimated immediately to the CUG entities in order to facilitate the flow of information in the public issue process.

Read all the Latest News, Breaking News and Coronavirus News here

first published:June 03, 2021, 18:55 IST