Chittorgarh.com Logo
FREE Account Opening + No Clearing Fees + Rs 999 API
Loading...

Detail process flow for 'Applications supported by Blocked Amount (ASBA)' payment Option.

asked

Open an Instant Account with Zerodha
  1. Self Certified Syndicate Banks (SCSBs) accept retail individual investors bid for IPO Shares at Cut-Off price through internet banking or at certain designated branches.
  2. Investor receives the acknowledgement from the bank along with the IPO Application Number.
  3. Bank blocks the amount in investor's bank account for the IPO as applied and send the application information to the designated stock exchanges for that IPO. In case of insufficient amount in investor's bank account, the bank can reject the IPO application and do not sent the bidding to stock exchanges.
  4. Bank keep the physical forms or electronic date (in case of online IPO Application) for specified period of time.
  5. IPO Registrar receives the final bidding information from stock exchanges soon after issue get close. ASBA applications are processed along with the other IPO applications.
  6. IPO Registrar validate the bids and rejects the application who doesn't match the application requirements.
  7. Registrar complete the ‘Basis Of Allotment' and get it approved from stock exchanges.
  8. Registrar sends request for money to SCSB's to transfer money to escrow public issue account.
  9. Registrar receives the money and transfer the allocated shares to investors Demat Account.

 

SEBI Says:

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.

answered


7 Comments

7. K Iswarya   I Like It. | Report Abuse |   Link | Aug 30, 2021 5:39:18 PM Reply
I didn't allocated any KIMS IPO when i applied and still i didnt refunded also, So any one can tell me the process to get them back!
6. Nilesh Sethi   I Like It. | Report Abuse |   Link | Sep 23, 2017 11:27:54 AM Reply
I did apply BRNL IPO through hdfc Bank ASBA. I didn''t receive allotment of shares but my fund is blocked till date. Who will be unblock my fund.
6.1. sushil subedi   I Like It. | Report Abuse |   Link | Feb 21, 2021 5:04:36 AM
who will provide my ipo rejected blocked money from bank why is so late and they use our money after rejected
5. pankaj shah   I Like It. | Report Abuse |   Link | Feb 22, 2012 9:45:37 PM Reply
Can I make IPO application of my family members through ASBA from my bank account ? They have demat account but not linked with my bank account.
4. MBDESAI   I Like It. | Report Abuse |   Link | Sep 26, 2010 5:11:11 PM Reply
Having a/c with SCSB whether an IPO ASBA APPLICATION can be made through nseindia.com ?
If yes what is the complte procedure of it?
Advise in the intrest of investor cmmunity as a whole.
Thanks
MBDesai
3. VIJAY   I Like It. | Report Abuse |   Link | Nov 30, 2009 1:47:21 PM Reply
What will be the role of sub-syndicate members in ASBA.
2. Kris   I Like It. | Report Abuse |   Link | Aug 6, 2008 7:36:35 PM Reply
Dear Motabhai,
Please find the answer of your question below:

1. Bank who are 'Syndicate members' for specific IPO will accept physical forms as usual. This is an existing process.

2. Only SCSBs at specific branch or online can accept application with ASBA payment option chose. Investor should have account with the bank to avail this facility.

3. If SCSB is also 'the Syndicate member' for the specific IPO, they will accept the IPO forms with other payment options.

4. Syndicate members without ‘SCSB’ status can not accept IPO Application with ‘ASBA payment option.

Example:
A. Suppose you have an account with XYZ Bank, XYZ bank has SCSB status from SEBI and XYZ bank is not the syndicate member of ABC IPO.

In this case you can submit your IPO bid using ASBA method with XYZ bank but they will not accept your application form with other payment option i.e. cheque.

B. Now suppose XYZ1 Bank is the syndicate member for the ABC IPO but not having SCSB status, they will accept physical application form with cheque but you cannot use ASBA payment option.

Hope this will clarify your doubt. Feel free to reply back in case of further questions.

Kris
1. MOTABHAI   I Like It. | Report Abuse |   Link | Aug 6, 2008 1:13:44 PM Reply
whether bank will receive the ipo application in physical form from its a/c holder only or from any individual who may not be interested in availing this amount block facility but may be interested in just depositing the form along with cheque as per general earlier procedure