The Securities and Exchange Board of India (SEBI) introduced the Application Supported by Blocked Amount (ASBA) scheme with effect from 1st September 2008. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to public/rights issues.
Bank has implemented a new hassle free solution for its Internet Banking customers called e-ASBA. It is a simple and easy way to apply online for an IPO, using funds in Saving Bank and Current accounts.
An investor can apply only upto 5 applications, with different individual details, per IPO from a single account. One can apply for as many IPOs as are open.
The amount blocked shall be the highest amount of bid options (Number of share multiplied by price per share, in case of cut-off price the cap amount, as the case may be) specified in the application.
Account will be debited only when allotment is made. Amount will remain blocked in the account and blocked amount will continue to earn interest for this period.
Bids at cut-off price is allowed only if total application amount (quantity X price) is less than or equal to Rs. 2, 00,000/-.
In case of non-allotment of share to the ASBA facility user or e-Banking user, Bank will not entertain any query/complain in this regard. Bank just facilitates this ASBA facility for the Bank customers.
Applications will have to be made within price band and with the right to withdraw the application. Investor must have an account with any of our branch (Saving and Current account) with e-banking (personal) facility.
Click here for ASBA e-forms provided by Bombay Stock Exchange
Click here for ASBA e-forms provided by National Stock Exchange