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FAQs Dated 15.05.2025

The Securities and Exchange Board of India (SEBI) has issued an updated set of Frequently Asked Questions (FAQs) on the Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, providing enhanced clarity on several procedural and regulatory aspects.

1. Scope of the Updated FAQs

The latest FAQs, released as of May 15, 2025, serve as a practical guide for stakeholders involved in capital market activities, covering a broad spectrum of topics including:

1.1 Issues by Indian Companies in India

Detailed guidance on the regulatory requirements applicable to public issues, rights issues, preferential issues, and Qualified Institutions Placement (QIP).
Clarifications on pricing norms, lock-in requirements, and disclosure obligations.

1.2 Issues by Foreign Companies – Indian Depository Receipts (IDRs)

Instructions on the process for foreign companies to raise capital in India through IDRs.
Key disclosures, eligibility criteria, and compliance frameworks involved in IDR issuance.

1.3 ASBA Facility (Applications Supported by Blocked Amount)

Operational procedures for investors applying through the ASBA mechanism, where application funds are blocked in the applicant’s bank account until allotment.
Roles and responsibilities of Self Certified Syndicate Banks (SCSBs).

1.4 UPI Integration with ASBA in Public Issue Process

Updated framework for the use of Unified Payments Interface (UPI) as a payment mechanism in the retail investor segment of public issues.
Step-by-step guidance on the UPI application flow, mandate approval, and reconciliation process.

1.5 Rights Entitlement (RE) Process

Guidance on the handling and trading of Rights Entitlements, which are issued as part of the rights issue process.
Clarifications on dematerialisation, renunciation, and market timings for REs.

2. Conclusion

These updated FAQs aim to streamline market processes, reduce ambiguities, and support efficient compliance with the ICDR framework. Issuers, merchant bankers, investors, and other stakeholders are encouraged to refer to the document to align their practices with SEBI’s expectations.