ASBA Online Facility for Investing in IPO
Application Supported by Blocked Amount (ASBA)
At ICICI Bank, we are committed to offer our customers the best of services. We are glad to offer you a simple and convenient facility of investing in IPOs through ASBA facility.
What is ASBA?
ASBA means “Application Supported by Blocked Amount”. ASBA is an application containing an authorisation to block the application money in the bank account, for subscribing to an issue. 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only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed.
It is a supplementary process of applying in Initial Public Offers (IPO), right issues and Follow on public offers (FPO) made through book building route and co-exists with the current process of using cheque as a mode of payment and submitting applications.
Benefits of ASBA
- The investor need not pay the application money by cheque 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 securities allotted is taken from the bank account when his / her application is selected for allotment after the basis of allotment is finalised.
- The application form is simpler.
- 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 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.
SEBI has been specifying the investors who can apply through ASBA.
In public issues with effect from May 01, 2010 all the investors can apply through ASBA.
In rights issues, all shareholders of the company as on record date are permitted to use ASBA for making applications provided he/she/it:
- is holding shares in dematerialised form and has applied for entitlements or
- has additional shares in the issue in dematerialised form;
- has not renounced its entitlements in full or in part;
- is not a renouncee;
who is applying through blocking of funds in a bank account with the ‘Self Certified Syndicate’ Bank.
An “ASBA investors”, at the time of submitting ASBA application should provide correct information related to
- DP ID
- Client ID
- Bid quantity
- Bank account number
Please click here for FAQS on ASBA
Please click here to view ASBA Enabled Branch list