ASBA (Applications Supported by Blocked Amount)
New Investor friendly way to apply for IPOs
Bank of Baroda is committed to continuously enhance its offerings with
innovative services leveraging advanced technology to provide maximum
banking convenience to its customers.
As a “Self Certified Syndicate Bank” (SCSB) by SEBI, an additional mode for
applying in IPO / FPO / Right Issues have been made available by our Bank in
the form of Application Supported by Blocked Amount (ASBA) to 'All category of
Investors other than QIBs' who are the customers of our Bank.
What is ASBA:
- ASBA means “Application Supported by Blocked Amount”, enables
investors to apply for IPOs / FPOs and rights issues without making a
payment. Instead, the amount is blocked in investors' own account and
only an amount proportionate to the shares allotted goes out when
allotment is finalized.
- 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.
- Bank is providing this value added service free of costs for issues with
book building at BSE.
Eligibility of Investors:-
From 01st January, 2010
All category of investors other than QIBs are eligible to apply for
public/rights issues using ASBA facility with certain terms and conditions
- An application can have up to three bid options & it can be revised also.
The lien will be marked on the highest value of the three bids.
- Bids at cut-off price allowed only if total application Amt is less than or
equal to Rs. 1,00,000 for investor category of Individual, Employee, Share
holders,
- One account can be blocked for maximum five applications in an IPO.
4. Revision and cancellation of bids for retail individual investors are
permitted till the issue closure date and time. However for investors other
than Retail, the revision is not permitted on the last day beyond 4 P.M.
Such investors are referred as “ASBA investors”, at the time of submitting
ASBA application the investors should take utmost care to provide the
correct-
- PAN
- DP ID
- Client ID
- Bid Quantity
- 14 digits bank Account number
Benefits of ASBA to Investors:
- 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 finalized.
- The application form is simpler.
- The investor deals with the known intermediary i.e. his/her own bank.
ASBA process operates in accordance with the SEBI's guidelines in force
from time to time.
Bank's 70 branches located at the strategic centres are currently identified in
the first phase to accept the ASBA Applications.
Some more branches are being identified and shall be operational soon in the
second phase and later to be extended to all CBS branches.
Click here to view ASBA designated branches
Click here for ASBA e-Application provided by NSE of India Ltd.
Click here for ASBA e-Application provided by BSE of India Ltd.
Disclaimer:
Bank does not own any responsibility for error attributable to failure of Technology, Computer Systems and
consequences there of to the customer. Bank's liability as a consequence of human error attributable to
Bank's employees is limited to an amount equivalent to interest at rates applicable to savings Bank accounts
on the blocked amount. Bank is not
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