Business

Sebi introduces additional payment modes for call money for partly paid securities

PTI

Markets regulator Sebi on Tuesday introduced additional payment mechanism, including ASBA, for making subscription and payment of balance money for calls in respect of partly paid securities issued by listed entities. The decision has been taken as payment through Application Supported by Blocked Amount (ASBA) mechanism is investor friendly and enables faster completion of the process, Sebi said in a circular. A call, in market parlance, is a demand made by the company on its shareholders to pay whole or part of the balance remaining unpaid on each share at any time during the life time of a company. “It has been decided to introduce additional payment mechanism (i.E. ASBA, etc) for making subscription and/or payment of calls in respect of partly paid specified securities through SCSBs and intermediaries such as trading members/ brokers - having three in one type account and Registrar and Transfer agents (RTA),” Sebi said. The additional payment methods provided by Sebi are online as well as physical ASBA and the facility of linked online trading, demat and bank account (three-in-one type) account offered by some brokers.