FAQs on e-IPO
Background:
A corporate may raise capital in the primary market by way of an initial public offer, rights issue, or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company.
SEBI guidelines defines Book Building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document".
Book Building is a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.
eIPO platform is an online bidding platform provided to Member/Bank/DP/RTA Users to submit their client's application for subscription to Exchange at regular intervals during the period of the issue for various products available in the system, viz. Equity IPO (Main Board/SME), Debt IPO, Rights issue, Rights call money, Tender, Sovereign Gold Bond, REIT/INVIT, SM REIT, ETF, NCB, ZCZP (SSE) etc.
eIPO platform has 3 types of Users, viz: Admin, Branch Admin and User. The roles assigned to each type of user are as follows:
- Admin - Reset password, checker role, modification/cancellation of bids, download of reports, enablement and disablement of users.
- Branch Admin - Reset password, checker role, modification/cancellation of bids, enablement and disablement of users for the specific branch.
- Users - Order entry, modification/cancellation of bids.
The admin id has an option to reset the password from login page.
For enabling the admin id, member may send an email to msm@nse.co.in providing the member code, email id and mobile number. The admin id shall be enabled, the password shall be reset by the Exchange and the same shall be communicated through e-mail.
The admin may reset the password/enable branch admin and users of the member. A branch admin user can reset password/ enable users for the specific branch.
No, bids cannot be placed through admin and branch admin login. Admin users can only modify or cancel a particular bid.
One bid per pan is allowed, thereafter which system shall not block any investor placing further orders, but the order is likely to be rejected while allotment. Investors can refer prospectus for details on technical rejection & can also contact Registrar of Issue for more details on this.
Orders with status as “submitted” in the bidding inquiry > final tab represents the orders available in Exchange order book.
If a member has placed bids for a client above 2 lakhs in non-retail category, then cancellation is not allowed. Cancellation is allowed for bids below 2 lakhs. Bids can be cancelled and placed again during market hours.
Member can view the status of the application in bidding enquiry screen in eIPO platform. Post submission of application, the Depository Participant (DP)/PAN details are verified with depositories and then sent to sponsor bank through API (UPI bids). The status is updated based on the response received from Depository/Sponsor Bank. Post bidding period Exchange provides all bids details to RTA for further processing. In case of UPI bids RTA & Sponsor Bank also carry out reconciliation of data based on details received from NPCI. The application/allotment status can also be checked with RTA.
The orders that are placed after the market hours and before the beginning of the market fall under the offline session. The trading member must release the orders in an online session, if orders are not released in live, same will not be considered as valid bids
Yes, an investor can verify the IPO application details through “IPO Bid Verification module” on the NSE website. This module may be accessed on the following path: NSE Website Home>Invest>Resources & Tools>Check Trades/Bids >Verify. To avail this facility, investors must register one time by providing the PAN details. The investor shall be able to view the details of the bids entered against the registered PAN number. The data would be available 6 days after the issue closure date.
Investor can check the status with Registrar of the Issue for allotment related details.
Member can either cancel the bid and place the bid again or can edit the same once the UPI status shows “invalid UPI”
Investor must check the UPI status and if the mandate has not been received, investor can contact the member through which he/she is placing the bid.
The member can re-initiate the bid which shall be allowed only once during the issue period. Re-initiation shall be allowed by the system only after bidding period closure for the day, i.e., every day after 5:00 pm. If the UPI status shows in eIPO platform as “request sent to investor’s UPI app for acceptance” then member has to coordinate with investor first and then with sponsor bank.
Re-initiation can be done by members from eIPO platform using the following path:
eIPO platform > bidding inquiry > final tab.
Members may either select the order and then click on resend UPI option or may select the details in UPI failed tab, select the order, and then click on resend UPI option.
Upon login, members may go to the miscellaneous tab to access the formats. File structures/sample files for various types of issues are available in the said tab. Misc à File Format
Link for latest Circular: https://nsearchives.nseindia.com/content/circulars/IPO58442.zip
Members may click on bulk upload tab, select type of file, and upload the file. After uploading the file, a batch number is generated and the count of success bids, error bids and total bids is displayed. There is a search bar available where the user can enter batch number and details of that batch shall be reflected below the search bar. Under the download response file, the user can download the error and success file. Error files consist of bids which are rejected along with rejection reason. Members can rectify the bid details and upload the fresh file again. Members can upload 1,00,000 records in one single file..
DP/PAN details are validated with depositories. In case there is any mismatch in the details mentioned in the bids then the order shall be displayed in this mismatch window. Either PAN or DP details can be modified.
E-form option is available for the members who want to generate forms with application numbers for their clients through eIPO platform. Members must fill in all details of the client and bid amount, generate the application number, and submit the bid to the Exchange.
Members shall need to send an email to msm@nse.co.in; providing the member code and user id. The Exchange shall provide access for the same within 1 working day. Further API is available on login screen of https://eipo.nseindia.com/eipo/bidux/login.jsp.
Members shall need to send an email to msm@nse.co.in ; providing member code, user id and URL. The exchange shall whitelist the URL and map the user within 4-5 working days.
Login without OTP is available only in case of login through API. For enabling login without OTP through API, members shall be required to send an email on msm@nse.co.in; providing member code and user ID. The same shall then be enabled by the Exchange for eIPO platform.
Debt IPO is available through eIPO platform and GOBID application. Direct Investor has an option to place bids through GOBID app for debt IPO or through its member. Before placing bids through GOBID app, a direct investor must register himself.
No, the investors do not receive any allotment advice for transactions done through GOBID platform. Investors can view past transactions for 7 days.
Disclaimer:
“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”
Updated on: 23/10/2024
