ASBA
Applications Supported by Blocked Amount (ASBA)
An application containing an authorization to block the application money in the bank account, for
subscribing to an issue.
Advantages of applying through ASBA :
•Simple, easy and smart way of application
•No hassle of refunds.
•Money does not go out of investors account.
•The investor continues to earn interest.
•Gives better opportunity for utilization of money.
•The investor deals with the known intermediary i.e. its own bank.
ASBA forms are treated similar to the non‐ASBA forms while finalizing the basis of allotment.
The chance of getting allotment is same for all the applicants whether application is made through ASBA
or non‐ASBA.
Example:
Who can apply through ASBA facility?
Public issues - w.e.`f. May 1, 2010 all the investors.
Rights issues - all shareholders as on record date provided he/she/it:
a. is holding shares in dematerialized form
b. has not renounced its entitlements in full or in part;
c. is not a renouncee;
d. who is applying through blocking of funds in a bank account with the Self Certified
Syndicate Bank.
It is not mandatory for an investor eligible for ASBA to apply through ASBA only, he
can
use the option of cheque payment.
Self Certified Syndicate Bank (SCSB)
SCSB : Bank which is recognized as capable of providing ASBA services to its
customers. Names of such banks would appear in the list available on the website of
SEBI, BSE, NSE. List of Self Certified Syndicate Banks (SCSBs) and their branches is also
given in the ASBA application form.
ASBA can be submitted to the SCSB with which the investor is holding the bank
account.
In case investor does not have an account with any of the SCSBs, then he can not
make use of the ASBA.
Investors need not necessarily have their DP account with the SCSB, where they
are submitting the ASBA form.
In case a person is having bank account with a particular branch, he can submit the
ASBA application to another branch provided that bank have core banking facility and
the branch is designated by the bank.
How can a bank become an SCSB?
• A bank registered with SEBI as a Banker to issue in terms of SEBI Regulations can
become SCSB subject to the following requirements:
• Submit a certification to SEBI confirming that it is capable of discharging the
responsibilities of a SCSB.
• SEBI will include bank name in the list of SCSBs displayed on the website of SEBI.
SCSB’s contact stock exchnges to get connectivity and ensures that system are in place
to ensure secured transfer of data.
Details that SCSB sends to the Stock exchanges and Registrar?
• Details like Application number, DP ID, Client ID, Bid Quantity, PAN from ASBA
form.
• In case of an Electronic ASBA, the ASBA investor himself/herself shall fill in all the
above mentioned details in the online application system of the bank, except the
application number which shall be system generated.
• Incase of withdrawal during the bidding period, SCSB shall delete the same for
each record individually or through batch upload.
• The SCSB shall send the following aggregate information to the Registrar to the
Issue after closure of the bidding period:
• (i) Total number of ASBAs uploaded by the SCSB
• (ii) Total number of shares and total amount blocked against the uploaded ASBAs.
• CB is expected to act as a central point of co‐ordination for various intermediaries
with SCSB i.e. Stock Exchanges, Registrar and Merchant Bankers.
Procedure of applying in IPO through ASBA.
Collect ASBA form from branches of the banks acting as SCSB.
• Fill the following details:
• Name of the applicant
• PAN number
• Demat account number
• Bid quantity
• Bid price
• Other relevant details
Submit the form to your banking branch by giving an instruction to block the amount
in the account.
ASBA form cannot be submitted to the broker as in case of cheque payment. The bank will
upload the details of the application in the bidding platform.
Investors should ensure that the details are correct to avoid rejection of the form.
Application can be done online through internet banking (if provided by your SCSB).
The SCSB shall give a counterfoil as an acknowledgement on submission and also the order
number, generated at the time of uploading the application details, if sought by the
investors in case of need.
After receipt of ASBA, SCSB is expected to ensure
(i) blocking of funds in the bank accounts mentioned in ASBA
(ii) uploading the details given in ASBA received physically or electronically, in the electronic bidding system
of Stock Exchange(s).
Complaints & Rejections
In case of any complaints the investor shall approach the bank, where the application
form was submitted or the Registrars to the issue.
An investor can apply either through ASBA or through cheque payment. If an applicant
applies through both modes, ASBA as well as non‐ASBA then both the applications
having the same PAN, will be treated as multiple application and hence will be rejected.
You have to approach the concerned SCSB for any complaints or rejections of ASBA
applications . SCSB is required to give reply within 15 days. In case not satisfied, you may
write to SEBI thereafter at the Investor Grievance Cell, Office of Investor Assistance and
Education.
Withdrawals
ASBA bids can be withdrawn by submitting the request for withdrawal through
a duly signed letter citing the application number, TRS number, if any to the same
bank
branch.
After the bid closure period, the withdrawal request can be sent to the Registrars
before the finalization of basis of allotment, who will cancel your bid and instruct
SCSB to unblock the application money in the bank account after the finalization of
basis of allotment.
In case the issue fails/withdrawn the SCSB shall unblock the application money from
the bank accounts upon receiving instructions from the Registrar.