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ASBA

ASBA Online Facility for Investing in IPO

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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only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed.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.
 
Click here to know more.

 

How do I apply for IPO?

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To apply for IPO, please login to your Internet Banking Account > Investments & Insurance > Invest Online > Invest in IPO.

Detailed procedure of applying in IPO through ASBA.

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Under the 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, demat account number, bid quantity, bid price and other relevant details to their bank 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.

For more details, please click here.

Can I apply for IPO through iMobile app?

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iMobile does not support IPO. You may apply for IPO through Internet Banking.

Please login to your Internet Banking Account > Investments & Insurance > Invest Online > Invest in IPO.

Who can apply through ASBA facility?

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SEBI has been specifying the investors who can apply through ASBA. In public issues w.e.f. May 1, 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:

 

  1. is holding shares in dematerialized form and has applied for entitlements or additional shares in the issue in dematerialised form;
  2. has not renounced its entitlements in full or in part;
  3. is not a renouncee;
  4. who is applying through blocking of funds in a bank account with the Self Certified Syndicate Bank.

Can I make application through ASBA facility in all issues?

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Yes, you can make application through ASBA facility in all the issues i.e. public and rights.

Where should I submit my Application Supported by Blocked Amount (ASBA)? How shall I know which bank and which branch of that bank is the designated branch for accepting ASBA applications?

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List of Self Certified Syndicate Banks (SCSBs) and their designed branches i.e. branches where ASBA application form can be submitted, is available on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com) and on the website of SEBI (www.sebi.gov.in). The list of SCSB would also be given in the ASBA application form.

Do I necessarily need to have a DP account with the SCSB where I intend to submit the ASBA application?

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No. Investors need not necessarily have their DP account with the SCSB, where they are submitting the ASBA form.

What is Self certified Syndicate Bank (SCSB)?

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SCSB is a bank which is recognized as a bank capable of providing ASBA services to its customers. Names of such banks would appear in the list available on the website of SEBI. [Also see answer to question (6)]

Can I submit ASBA in any of the banks specified in the list of SCSBs?

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No, ASBA can be submitted to the SCSB with which the investor is holding the bank account.

In case a person is having bank account with a branch, for example, at Kolkata can he submit IPO application through ASBA at a branch of the bank in Guwahati.

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Yes, this can be done provided that your bank have core banking facility and the ASBA form is submitted at a branch which is identified as designated branch by the bank.

Is there a better chance of allotment if one applies in IPO through ASBA?

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The chance of getting allotment is same for all the applicants whether application is made through ASBA or non-ASBA. ASBA is a simple, easy and smart way of applying in public issues. There are many advantages of applying through ASBA like money does not go out of investors’ account, no hassle of refund, investor keep earning interest on the blocked amount as banks have started paying interest on daily basis w.e.f April 1, 2010 and it gives better opportunity for utilization of money.

Can I submit my ASBA to a broker as is being done in the present issue process applying through cheque?

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You are required to submit ASBA to the SCSBs only.

I want to know the status of allotment for IPO?

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We request you to check with the registrar for the status of IPO allotment.

I want to cancel the IPO.

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You can cancel the IPO only before the end date of the IPO by following the below mentioned steps:

Step 1: Login to Internet Banking and select the option for Investment & Insurance.
Step 2: Click on Invest Online.
Step 3: Click on Invest in IPO under Online IPO option.
Step 4: Submit the request.
Step 5: Please enter the grid values and click on Submit.
Step 6: A confirmation page will be triggered which the customer has to verify and click on Submit.
Step 7: Select the option of Order Book and click on the Trans ID.
Step 8: Click on the option of withdrawal application.

Can I apply in an issue through ASBA facility and through “normal existing system of payment through cheque” in an issue?

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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 will be rejected.

When will the blocked amount be released which was blocked in the IPO application?

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Once the issue date is closed, that will be considered as Transaction Day. Allotment will be done in T+4 working days. (Till that time the lien will be marked). Once the allotment confirmation is received from the registrar, then the blocked amount will be released in one working day.

Is it mandatory for investors eligible for ASBA, to apply through ASBA only?

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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.

Can I apply for Offer For Sale (OFS) through IPO?

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Offer For Sale (OFS) and IPO both are different products. Hence, you will not be able apply through IPO.

Whether my bank account will be blocked or only the amount to the extent of application money is blocked?

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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.

What if the SCSB is not the applicant’s banker?

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ASBA forms can be submitted only at the SCSBs. In case investor does not have an account with any of the SCSBs, then he can not make use of the ASBA.

What is “ASBA”?

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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.

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.

How many applications can be made from a bank account?

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Five (5) applications can be made from a bank account per issue.

How do I know that the allotment has been done for IPO?

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You will receive a message once the shares are credited in your demat account.

Why is the system not allowing to submit the request for IPO? It is showing error ''Special characters are not allowed”.

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Special characters are not allowed in the salutation of the name. Hence, we request you to delete the full-stop in the salutation and submit your request for IPO.

Who should I approach if I find that I had given all correct details in the ASBA form, but application has been rejected stating wrong data?

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You have to approach the concerned SCSB for any complaints regarding your ASBA applications. SCSB is required to give reply within 15 days. In case, you are not satisfied, you may write to SEBI thereafter at the following address:

Investor Grievance Cell, Office of Investor Assistance and Education,
Securities and Exchange Board of India
Plot No.C4-A,'G' Block, Bandra Kurla Complex,
Bandra(East),
Mumbai: 400051
Tel: +91-22-26449000 / 40459000
Fax: +91-22-26449016-20 / 40459016-20

What advantage an investor has in applying through ASBA vis-a-vis applying through an application with a cheque?

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Applying through ASBA facility has the following advantages:

  1. The investor need not pay the application money by cheque rather the investor submits ASBA which accompanies an authorization to block the bank account to the extent of the application money.
  2. The investor does not have to bother about refunds, as in ASBA only that much money to the extent required for allotment of securities, is taken from the bank account only when his application is selected for allotment after the basis of allotment is finalized.
  3. The investor continues to earn interest on the application money as the same remains in the bank account, which is not the case in other modes of payment.
  4. The application form is simpler.
  5. The investor deals with the known intermediary i.e. its own bank.

Will I get the acknowledgement of receipt for applications submitted through ASBA from the SCSB?

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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.

Can I withdraw my ASBA bids? If yes, how?

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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 a 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 before the finalization of basis of allotment, who will cancel your bid and instruct SCSB to unblock the application money in the bank account after the finalization of basis of allotment.

Can I use the existing application form for public issues for applying through ASBA?

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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.