Page 3 - Digi Notes - GA- 27-03-2016
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(General Awareness) ASBA
ASBA means “Application Supported by Blocked Amount”.
ASBA is an application containing a right to block the application money in the bank account, for
subscribing to an issue of securities (Shares).
If an investor is applying through ASBA, his application money shall be debited from the bank
account only if his/her application is selected for allotment after the basis of allotment is
finalized, or the issue is withdrawn/failed.
Under ASBA facility, investors can apply in any public/ rights issues by using their bank account.
Investor submits the ASBA form (available at the designated branches of the banks acting as
SCSB) after filling the details like name of the applicant, PAN number, demat account number,
bid quantity, bid price and other relevant details, to their banking branch by giving an
instruction to block the amount in their account.
In turn, the bank will upload the details of the application in the bidding platform.
Investors shall ensure that the details that are filled in the ASBA form are correct otherwise the
form is liable to be rejected.
Eligibilty for ASBA
Since May 1,2010 all investors are eligible to apply through the ASBA route.
Advantages -
The investor continues to earn interest on the application money as the same
remains in the bank account.
The investor does not have to bother about refunds, as in ASBA only that much money to
the extent required for allotment of securities, is taken from the bank account only when
his application is selected for allotment after the basis of allotment is finalized.
The application form is simpler.
The investor deals with the known intermediary i.e.its own bank
It is mandatory for all public issues opening on or after January 01, 2016 to apply through the
ASBA route.
Note – SCSB (Self-certified Syndicate Bank) is a bank which is recognized as a bank capable of
providing ASBA services to its customers.
Names of such banks would appear in the list available on the website of SEBI.
Date of Release -15-FEB-16 SUBJECT: GA www.bankersguru.org
(General Awareness) ASBA
ASBA means “Application Supported by Blocked Amount”.
ASBA is an application containing a right to block the application money in the bank account, for
subscribing to an issue of securities (Shares).
If an investor is applying through ASBA, his application money shall be debited from the bank
account only if his/her application is selected for allotment after the basis of allotment is
finalized, or the issue is withdrawn/failed.
Under ASBA facility, investors can apply in any public/ rights issues by using their bank account.
Investor submits the ASBA form (available at the designated branches of the banks acting as
SCSB) after filling the details like name of the applicant, PAN number, demat account number,
bid quantity, bid price and other relevant details, to their banking branch by giving an
instruction to block the amount in their account.
In turn, the bank will upload the details of the application in the bidding platform.
Investors shall ensure that the details that are filled in the ASBA form are correct otherwise the
form is liable to be rejected.
Eligibilty for ASBA
Since May 1,2010 all investors are eligible to apply through the ASBA route.
Advantages -
The investor continues to earn interest on the application money as the same
remains in the bank account.
The investor does not have to bother about refunds, as in ASBA only that much money to
the extent required for allotment of securities, is taken from the bank account only when
his application is selected for allotment after the basis of allotment is finalized.
The application form is simpler.
The investor deals with the known intermediary i.e.its own bank
It is mandatory for all public issues opening on or after January 01, 2016 to apply through the
ASBA route.
Note – SCSB (Self-certified Syndicate Bank) is a bank which is recognized as a bank capable of
providing ASBA services to its customers.
Names of such banks would appear in the list available on the website of SEBI.
Date of Release -15-FEB-16 SUBJECT: GA www.bankersguru.org
