What is the role of SEBI in the ASBA process?

SEBI, the Securities and Exchange Board of India, plays a crucial regulatory role in the Indian securities market. In the context of the ASBA (Application Supported by Blocked Amount) process, SEBI developed and introduced this method as a way to enhance the efficiency and transparency of the IPO (Initial Public Offer) and Rights Issue subscription process. The ASBA process was introduced by SEBI to address several concerns and challenges associated with traditional methods of IPO and Rights Issue applications. These concerns included immediate debiting of funds, the need for refunds in case of non-allotment, and the risk of oversubscription.