Dear Friends
As you aware SEBI has been soliciting feedback from market about ASBA facility on an ongoing basis. Non-availability / limited availability of ASBA forms with Self Certified Syndicate Banks (SCSBs) has often been cited as one of the reasons for investors not being able to effectively use ASBA facility.
In order to make ASBA form easily available to investors, SEBI has, in consultation with Stock Exchanges, made it possible for investors to download and print ASBA application form from the website of BSE or NSE. Each ASBA form, so downloaded, shall have a unique application number which is important from control and processing point of view. Therefore application made using photocopy of the downloaded form shall not be accepted.
ASBA provides an alternative mode of payment in issues whereby the application money remains in the investor’s account till finalization of basis of allotment in the issue.
ASBA process facilitates retail individual investors bidding at cut-off, with single option, to apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts. SCSBs are those banks which satisfy the conditions laid by SEBI. SCSBs would accept the applications, verify the application, block the fund to the extent of bid payment amount, upload the details in the web based bidding system of NSE, unblock once basis of allotment is finalized and transfer the amount for allotted shares, to the issuer.
This would co-exist with the current procedure of investors applying through sub syndicate/ syndicate members, with cheque as a payment instrument.
The circular giving details of this facility, issued to all intermediaries is available here
ASBA at BSE
ASBA at NSE
ASBA at BSE
ASBA at NSE
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