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1. What is “ASBA”?
ASBA means “Application Supported by Blocked Amount”. ASBA is an application
containing an authorization 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only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed.
2. Who can apply through ASBA facility?
SEBI has been specifying the investors who can apply through ASBA. In public issues w.e.f. January 1, 2010 all the investors other than Qualified Institutional Buyers (QIBs) 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:
a. is holding shares in dematerialized form and has applied for entitlements or
additional shares in the issue in dematerialised form;
b. has not renounced its entitlements in full or in part;
c. is not a renouncee;
d. who is applying through blocking of funds in a bank account with the Self
Certified Syndicate Bank.
3. Is it mandatory for investors eligible for ASBA, to apply through ASBA only?
No, it is not mandatory. An investor, who is eligible for ASBA, has the option of making application through ASBA or through the existing facility of applying with cheque.
4. Can I make application through ASBA facility in all issues?
Yes, you can make application through ASBA facility in all the issues i.e public and
rights.
5. Where should I submit my Application Supported by Blocked Amount (ASBA)?
At the designed branches hosted on site.
6. What is Self certified Syndicate Bank (SCSB)?
SCSB is a bank which is recognized as a bank capable of providing ASBA services to its customers. IDBI bank is SCSB for ASBA process.
7. Can I submit ASBA in any of the banks specified in the list of SCSBs?
No, ASBA can be submitted to the SCSB with which the investor is holding the bank
account.
8. How many applications can be made from a bank account?
Five (5) applications can be made from a bank account per issue.
9. Can I use the existing application form for public issues for applying through ASBA?
Investor is requested to check the form carefully. In case of public issue, the
application form for ASBA will be different from the existing application form for
public issues. The application forms will be available with designated branches of
SCSB. In case of rights issue, there will not be a separate form for ASBA. The investor has to apply by selecting ASBA option in Part A of the Composite Application Form.
10. Can I withdraw my ASBA bids? If yes, how?
Yes, you can withdraw ASBA bids. During the bidding period you can approach the
same bank to which you had submitted the ASBA and request for withdrawal through duly signed letter citing your application number, TRS number, if any.
After the bid closure period, you may send your withdrawal request to the Registrars,
who will cancel your bid and instruct SCSB to unblock the application money in the
bank account after the finalization of basis of allotment.
11. Whether my bank account will be blocked or only the amount to the extent of application money is blocked?
No. the entire bank account will not be blocked. Only the amount to the extent of
application money authorized in the ASBA will be blocked in the bank account. The
balance money, if any, in the account can still be used for other purposes.
12. If I withdraw my bid made through ASBA, will the bank account be unblocked immediately?
If the withdrawal is made during the bidding period, the SCSB deletes the bid and
unblocks the application money in the bank account. If the withdrawal is made after
the bid closure date, the SCSB will unblock the application money only after getting
appropriate instruction from the Registrar, which is after the finalization of basis of
allotment in the issue.
13. Do I necessarily need to have a DP account with the SCSB where I intend to submit the ASBA application?
No. Investors need not necessarily have their DP account with the SCSB, where they are submitting the ASBA form.
14. Can I submit my ASBA to a broker as is being done in the present issue process applying through cheque?
You are required to submit ASBA to the SCSBs only.
15. Can I apply in an issue through “ASBA” facility and through “normal existing system of payment through cheque” in an issue?
No. An investor can apply either through ASBA or through existing system of payment through cheque. If an applicant applies through both ASBA as well as non ASBA then both the applications having the same PAN, will be treated as multiple application and hence rejected.
16. Are the bids submitted through ASBA and uploaded in the electronic bidding system
of the stock exchange, in case of public issue through book building, reflect in the demand graphs displayed in the website of stock exchanges?
Yes. The bids received through ASBA mode will also be reflected in the demand
graphs displayed in the website of stock exchanges.
17. Who is responsible for errors in the data uploaded in the electronic bidding system in case of public issue?
In case there is an error in the data furnished in the application form submitted by
investor, the investor shall be responsible. In case there is an error by SCSB in entering the data in the electronic bidding system of the stock exchanges, the SCSB shall be responsible.
18. Will I get the acknowledgement of receipt for applications submitted through ASBA from the SCSB?
Yes. The SCSB shall give a counterfoil as an acknowledgement at the time of
submission of ASBA and also the order number, generated at the time of uploading
the application details, if sought by the investors in case of need.
19. Will there be any different treatment in allotment for ASBA and Non –ASBA forms?
No. ASBA forms will be treated similar to the nonASBA forms while finalizing the basis of allotment.
20. What happens when the issue fails/is withdrawn?
In case the issue fails/withdrawn the SCSB shall unblock the application money from
the bank accounts upon receiving instructions from the Registrar.
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