CH 5: CAPITAL MARKETS – SEBI – PART 2

ASBA (Applications Supported by Blocked Amount)

ASBA is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them. Under ASBA facility, investors can apply in any public/rights issues by using their bank account. Retail Investors, Qualified Institutional Buyers, Non-Institutional Investors, making application in public/rights issue shall mandatorily make use of ASBA facility.

Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the designated regulatory body for the finance and investment markets in India.

sebi
Securities Exchange Board of India

For the discharge of its functions efficiently, SEBI has been vested with the following powers:

  1. to approve by−laws of Securities exchanges.
  2. to require the Securities exchange to amend their by−laws.
  3. inspect the books of accounts and call for periodical returns from recognized Securities exchanges.
  4. inspect the books of accounts of financial intermediaries.
  5. compel certain companies to list their shares in one or more Securities exchanges.
  6. registration broke

References:

  • “Principles & Practices of Banking”, Tata McGraw-Hill, New Delhi.
  • “Indian Economy “, Sankarganesh Karuppiah, Kavin Mukul Publications.

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