Date:22/01/2006 URL: http://www.thehindubusinessline.com/2006/01/22/stories/2006012202440300.htm

Back SEBI directive to merchant bankers on refund of IPO money

Our Bureau

Mumbai , Jan. 21

SEBI on Friday asked merchant bankers to make the refund money of IPO applications through the electronic clearing services only for applicants residing in 15 centres where clearing houses are managed by the Reserve Bank of India.

In a circular to the merchant bankers, SEBI said it was making amendments to the SEBI (Disclosure and Investor Protection) Guidelines, 2000, to necessitate the change.

The refunds can be made through direct credit and real time gross settlement (RTGS), if the applicant is eligible to get refunds through these processes.

For refunds through ECS, SEBI said the details of bank accounts of applicants would henceforth be taken directly from the depositories' database for public issues where applications are made wholly in the dematerialised form.