Regulatory and operational duties of Merchant Bankers throughout the lifecycle of a public issue.

Role and responsibilities of Merchant Bankers shall include the following: 
1. The pre‐issue merchant banker(s) shall ensure that the ASBA facility is provided as the only mode of accepting Application-Bid‐Cum forms in all Initial public issues. 
2. The pre‐issue merchant banker(s) shall ensure that appropriate disclosures/ instructions are given regarding the ASBA facility in the Red Herring Prospectus and abridged prospectus and in application forms, to enable investors to understand and apply through the ASBA facility 
3. The pre‐issue merchant banker(s) shall ensure that sufficient number of Physical ASBA forms are printed and are made available to all SCSBs. Further, it shall ensure that SCSBs are also provided with a soft copy of the abridged prospectus/ prospectus. 
4. The pre‐issue merchant banker(s) shall intimate before opening of the issue the basis of commission payable to SCSBs, the bid/ issue opening and closing date/ time, including details of revision in price band/ floor price/ bidding period, if any to SCSBs through Registrar to Issues. 
5. In case of failure/ withdrawal of the issue, the pre‐issue merchant banker(s) shall inform SCSBs through Registrar to Issues regarding the same. 
6. The post‐issue merchant banker(s) shall inform the Registrar to the Issue, the date by which subscription money shall be transferred to the issuer’s account designated for this purpose, by SCSBs 
7. The pre and post issue merchant banker(s) shall co‐ordinate with the Registrar to the Issue for providing appropriate information/ instructions to the SCSBs in respect of the ASBA facility. 
8. Unless otherwise specified in the regulations / circulars for ASBA facility, the pre and post issue merchant banker(s) shall ensure that all intermediaries follow uniform procedure for ASBA. 
9. Discount, if any, to the specified category of investors shall be adjusted before blocking the amount from the investors’ bank account i.e. the blocking is to be carried out net of discount.