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ASBA IPO Facility

asba facility for investing in any ipo

Learn more about Application Supported by Blocked Amount Facility from TMB.

ASBA IPO Facility

Now you have the power to keep your money required for investing in any Initial Public Offering (IPO) in your bank account itself while still being able to apply for the IPO. Please visit your nearest TMB bank branch for any futher queries and assistance.

What is ASBA?
Application Supported by Blocked Amount means an application for subscribing to a public issue, along with an authorization to Self Certified Syndicate Bank to block the application money in a bank account.
Who are Self Certified Syndicate Banks?
The Banks who are authorized to undertake ASBA activities by SEBI are called Self Certified Syndicate Banks.
How / From Where to Download the ASBA Application Form?
To down load the application / see current open issues, please click NSE Link: http://www.nseindiaipo.com/issueforms/html/index.html
What happens when apply for an IPO / FPO / Rights Issue through ASBA?
When applied using the ASBA form, the investors would not have to pay the money during IPO application. The amount would be retained in the investor’s bank account and blocked for the IPO application. The amount will be debited in their account only if shares are allotted to the investor, for the amount to be paid towards the shares allotted to the investor/customer. If there is no allotment, the amount would be simply released / unblocked, and the investor would be able to utilize it immediately.
For example, if Investor A applies for 100 shares of stock B worth Rs. 1,00,000, the investor’s bank account is blocked for the requisite amount. In process of allotment, if the investor is allotted stock worth only Rs. 10,000, then the investor’s bank account is debited with Rs. 10,000 and the balance Rs. 90,000 is unblocked.
Who are Eligibile for ASBA?
SEBI has been specifying the investors who can apply through ASBA. In public issues with effect from 01st May 2010 all the investors can apply through ASBA. For Rights Issues, all the existing share holders can apply through ASBA. Any investor who Holds a savings / current account with the Bank and Has a valid PAN Number & PAN Card can apply for shares under ASBA mode with our Bank.
What is the modus-operandi in ASBA Process?
  • The investor has to submit the filled in ASBA APPLICATION FORM [a designated form for this purpose] to the designated branch of our Bank with whom he has maintained account. The application can be downloaded from NSE Website as referred above.
  • The branch in turn blocks his Current/Savings Account towards the application amount.
  • After the closure of the IPO / FPO / Rights issue, the Registrar will allot shares to the investor.
  • The details of successful bidders will be notified by the Registrar to the Self Certified Syndicate Banker i.e. Bank.
  • The Bank will debit the Savings / Current Account of the investor towards the value of share allotted and transfer the same to the Registrar for crediting of shares in the investor’s demat account.
What are the Benefits of ASBA?
  • The investor need not pay the application money by Cheque / Demand Draft rather block his / her bank account to the extent of the application money, thus continue to earn interest on application money.
  • The investor does not have to bother about refunds, as in ASBA only an amount proportionate to the shares allotted is taken from the bank account when his / her application is selected for allotment.
  • The application form is simple.
  • The investor deals with the known intermediary i.e. his or her own bank.
  • No loss of interest, since the application amount is not debited to the savings account on submission of application.
  • Since the amount is available in the account, it is considered for calculation of the Average Quarterly Balance (AQB).
  • Customer can revise / withdraw the bid before the end of the Issue in the prescribed format with the Bank.
Information for Investors
  • We will not accept more than five applications per account per issue.
  • We will not accept any ASBA after the closing time of acceptance of bids on the last day of the bidding period.
  • We will block the highest of the bid amt, in case there are more than one bids.
  • We will give ASBA investors an acknowledgement for the receipt of ASBAs.
  • We will not upload any ASBA in the electronic bidding system of the Stock Exchange(s) unless It has received the ASBA in physical form and there is sufficient amount to block the highest bid as per ABA application form.
  • For withdrawal of bids by ASBA investors during bidding period, Bank will delete the original bid from the electronic bidding system of the Stock Exchange(s) and funds will be unblocked in the relevant bank account as per time-lines specified in the ASBA facility.

Designated Branches for ASBA Services

The following are the 65 branches that are currently authorized to offer / provide ASBA Services to the customers.

To download the application / see current ASBA supported open issues:

Visit the NSE Site: http://www.nseindiaipo.com/issueforms/html/index.html