What is ASBA:
ASBA [Applications Supported by Blocked Amount] is a system of blocking the funds of applicants of IPOs in their respective accounts and release the funds to the Company from such blocked accounts only after the allotment to the extent of allotment made and unblock the remaining amount in the account
Who can Apply :
All Resident Individuals, HUF and QIBs having Demat a/c, PAN No. and maintaining Current /SB/CLSB with any CorpBank branches
Features of ASBA:
1. ASBA IPO Applications will be received at the Designated Branches
2. On receipt of ASBA applications, the Branches will mark lien in the specific account of the customer to the extent of amount applied for through the system.
3. This amount gets blocked in the account and money will however continue to remain in the account of the customer till the date of allotment.
4. The details of the IPO application and the amount blocked would be passed to the Exchange and Registrar through the system.
5. The amount held in the account of the customer would continue to earn interest as applicable to the account.
6. Any withdrawals or debits to the extent of blocked amount are not permitted in the account till the finalisation of allotment of shares. However, balance in the account over and above the blocked amount is free from any charge.
7. When the Registrar completes the process of allotment, based on the instructions released from the Registrars, the system will debit the account to extent of the allotment and will unblock the account.
8. The applicants can cancel, revise or modify the bid within the bidding period.
9. Facility to apply through Internet without the necessity of visiting the branch.
10. While applying through Internet only banks Internet ID and Password are required. No need of filling up physical form.
11.Through Internet, one time registration is required to be made. Only minimum Information is required to be filled every time while applying
12.Through Internet, details of various IPO s currently available can also be viewed.
13. Applying through Internet through Corpbank website is totally hassle free.
Advantages of ASBA:
1. No issue of Cheque / Purchase of DDs and hence no clearing
2. Applicant can make 5 applications from a single deposit account
3. Money lies in the a/c and earns interest
4. Lien marked only to the extent of the bid amount
5. Money to be appropriated on allotment to the extent of shares allotted
6. No physical refund involved, no hassles of lost / delayed refunds
7. Shorter turnaround time for entire IPO processing.
ASBA is available at all branches of the Bank.
NSE On Line Application Form: http://www.nseindiaipo.com/issueforms/html/index.html