NSE launches e-IPO bidding system; will conduct mock bidding for brokers

The National Stock Exchange of India Limited (NSE) has launched its new e-IPO bidding system and will hold a mock bidding session for brokers to help familiarise themselves for the next two days. The move is in line with markets regulator Sebi's decision to streamline the public issue process by making application supported by blocked amount (ASBA) as a mandatory payment mechanism for all investors from January 1, 2016, said the media reports. NSE had announced the launch of new 'e-IPO Web-based bidding system' on December 31 last year, reported PTI. It had also announced that it would discontinue its IPO terminal which supports non-ASBA bids for all public issues opening on or after January 1, 2016. "To make trading members accustomed to the system, the exchange is conducting mock bidding session from January 12, 2016 to January 13, 2016 in the NSE e-IPO system," NSE said in a notice today. The new bidding system has the facility of Web-based log-in through the Internet, offline bid entry post market hours, download facility of orders and order history, among others. Sebi on January 1 had put in place a new form for ASBA facility, which has become mandatory for all categories of investors applying for a public issue for making payment. The provision allows the bid amount to remain in the applicant's account till the time shares are finally allotted. A keenly-awaited move from Sebi is the e-IPO (Electronic Initial Public Offers) mechanism, through which investment in public offerings can be done online without signing any physical documents. E-IPOs will help fast-track the public offer process and lower costs, besides allowing investors to apply for shares and buy these at the click of a mouse without the need for signature on bulky physical documents. The board of Sebi had already approved a proposal to use secondary market infrastructure for public issuance called e-IPOs.