Procedure for Bidding
The method and process of bidding is subject to the following:
The bid should be open for at least five days and not more than 10 days which may be extended to 13 days in case price band is revised. The advertisement should also contain the following: (a) the date of opening and closing of the bidding (not less man five days), (b) the name and addresses as the syndicate members as well as the bidding terminals for accepting. (c) the method as a process of bidding. Bidding should be permitted only if an electronically linked transparent facility is used. The syndicate members should be present at the bidding centers so that at least one electronically linked computer terminal at each bidding centers is available for the purpose of bidding. The number of bidding centers in case of 75 per cent of the net offer to the public that is offered through book-building should not be less than the number of mandatory collection centers specified in the relevant SEBI guidelines. In case of 100 per cent of the net offer is open to the public through book-building, bidding centers should be located at all places. where recognized stock exchanges are situated.
During the period the issue is open to the public for bidding, the applicants may approach the brokers of the stock exchange(s) through which the securities are offered under the online system to place an order for bidding to the securities. All the brokers should accept orders from all clients/investors who place order through them. The broker(s) should collect the client registration form duly filled up and signed from the applicants before placing the order in the system 35 per know your client rule as specified by the SEBI from time to time. He should thereafter enter the buy order in the systems on behalf of the client(s) and important details inducing name, address, telephone number and category of the applicant, number of shares applied for, amount paid, beneficiary , DP code and bid-cum-application form number, bid price and so on and give order number/confirmation stop to the investor. He should also open a separate bank (escrow) account with the clearing bank for primary market issues. The amount collected by him from his clients investors as margin money should be deposited in the escrow account.
The investors would have the right to revise their bids provided the QIBs are not allowed to withdraw their bids after the closure of the bidding.