supported by Blocked Amount (ASBA)
- Securities and Exchange Board of India (SEBI)
had introduced a supplementary process of applying
in Public issues viz Applications Supported
by Blocked Amount (ASBA) process which could
be offered only by a Self Certified Syndicate
Bank (SCSB). It shall co exist with the
current process wherein cheques is used as
a mode of payment of application money.
Bank had been admitted as a SCSB for ASBA Phase
II by SEBI and is eligible to act as a SCSB
for all issues.
- The ASBA Phase II service
is made operational in the Bank with effect
from May 3, 2010.
- The facility is now available at all the branches of our bank.
- NANDANAM branch will be the NODAL branch for reporting requirements. All other branches are designated branches.
- ASBA facility can be utilised presently by
all categories of investors including Qualified
Institutional Buyers for applying to IPOs coming
through the Book Building route and Rights
- ASBA facilities:
- ASBA facility is available only to our
customers who are maintaining a SB account
(other than Smart Kids) / Current account
with our Bank.
- The investor has to make an application
in the specified form with all columns
- The Bank will create a hold in the investor’s
account with the Bank equivalent to the
application money (highest of the bid amount).
- The application will be uploaded to the
BSE / NSE system towards building the Book.
- On allotment, the bank gets the details
from the Registrar to the Issue and based
on which the amount equivalent to the number
of shares allotted multiplied by the price
is transferred to the Issuer’s account
and the hold is lifted for the balance
- In the case of the investor not getting
any allotment, the hold is removed on the
entire application money.
- When the Issue is open the investor has
the option to vary the bid price.
- Benefits to the Investor:
- For SB account holders the application
money/bid amount is not parted and is only
blocked in the account till allotment is
finalised and will be earning interest
during the intervening period.
- Safe way of investing.
- Hassle free refund process. Instead
of the earlier waiting period of getting
the refund cheque in case of non allotment/partial
allotment, there is no waiting period under
ASBA process. On allotment/partial
allotment, the amount is unblocked and
amount is transferred to the issuer to
the extent of allotment amount and the
account holder could utilise the unblocked
funds for further issues/other purposes.
- On allotment, the status of allotment
can be ascertained from the Branch
Please refer to FAQ on ASBA in SEBI website