I had applied for Mazgaon IPO did not got the allotment. But i got Rs 333.58 on 23 Oct in my bank account mentioned as Mazagaon IPO compensation-SEBI formula.
I tried searching on web regarding Mazgaon IPO compensation found nothing. Can someone throw same info around IPO compensation and why amount is being credited?
There are few scenarios in which SEBI has prescribed to compensate Retail Individual Investors for cost of opportunity lost while applying for IPO.
a) Failure on part of the Self Certified Syndicate Banks (SCSBs) to make bids in the concerned Exchange system even after the amount has been blocked in the investors’ bank account with such SCSB.
b) Failure on part of the SCSB to process the ASBA applications even when they have been submitted within time.
c) Any other failures on part of an SCSB which has resulted in the rejection of the application form.
Can read this SEBI circular regarding the same for more information.
Thanks Shubham. This information was really helpful. Just verified, despite submitting correct application through ASBA process within time my application was cancelled. Due to this i was being compensated.