Monday, September 15, 2008

SEBI celebrated the success of ASBA IPO Payment Option

 SEBI released a circular today telling the success story of Applications Supported by Blocked Amount (ASBA) payment option. Around 10% retail investors in 20 Microns IPO invested though ASBA payment options. 20 Microns IPO was subscribed around 10.5851 times in retail.

Most of the bids received through ASBA payment option came from ICICI Bank, who provided easy online IPO bidding to its account holders using ASBA method through Bank received 1943 applications for around 67k 20 Microns IPO Shares though ASBA payment option.

Other banks received IPO Applications through ASBA payment options are SBI, HDFC, Corporation Bank and Union Bank.

After this success, SEBI is planning for a big rollout of the new payment option with more then 60 banks for upcoming IPO's. SEBI is also in process of considering other recommendations to make IPO investment convenient and transparent to the investors. Listing day volatility in IPO shares is still the biggest challenge for SEBI.

Mukesh Kothari