ASBA

    To make the existing public issue process more efficient, SEBI has introduced a supplementary process of applying in public issues, viz. the “Applications Supported by Blocked Amount (ASBA)”.

    An ASBA investor shall submit an physical ASBA to the Bank.  The Bank shall then block the application money in the bank account specified in the ASBA, on the basis of an authorization to this effect given by the account holder in the ASBA.  The application money shall remain blocked in the bank account till finalization of the basis of allotment in the issue or till withdrawal / failure of the issue or till withdrawal / rejection of the application, as the case may be.  The application data shall thereafter be uploaded by the Bank in the electronic bidding system through a web enabled interface provided by the Stock Exchanges.  Once the basis of allotment is finalized, the Registrar to the issue shall send an appropriate request to the CB of Bank for unblocking the relevant bank accounts and for transferring the requisite amount to the issuer’s account designated for this purpose.  In case of withdrawal / failure of the issue, the amount shall be unblocked by the Bank on receipt of information from the pre-issue merchant bankers through the concerned Registrar to the Issue.

Meaning

    Application Supported by Blocked Amount (ASBA):

    ASBA means an application for subscribing to a public issue, along with an authorization to Self Certified Syndicate Bank to block the application money in a bank account.

    Self Certified Syndicate Bank (SCSB):

    SCSB means a banker to an issue registered with SEBI, which offers the facility of Application Supported by Blocked Amount.  IndusInd Bank is an SCSB and will accept applications under ASBA from its account holders for all public issues.

Eligibility

    All investors except Qualified Institutional Buyers (QIBs) are eligible to apply through ASBA in public issues.

Information for Investors

    1. Bank shall not accept more than five applications per account per issue.
    2. Bank shall not accept any ASBA after the closing time of acceptance of bids on the last day of the bidding period.
    3. Bank shall block the highest of the bid amt, in case there are more than one bids.
    4. Bank shall give ASBA investors an acknowledgement for the receipt of ASBAs.
    5. Bank shall not upload any ASBA in the electronic bidding system of the Stock Exchange(s) unless –
      • It has received the ASBA in a physical or electronic form and
      • There is sufficient amount to block the highest bid as per ABA application form.
    6. For withdrawal of bids by ASBA investors during bidding period, Bank shall delete the original bid from the electronic bidding system of the Stock Exchange(s) and funds will be unblocked in the relevant bank account as per timelines specified in the ASBA facility.
    7. Bank shall make available the information about revision in the bidding period or price band of any issue, as and when received, on its website, for information of ASBA investors.
       
      Salient features of the ASBA facility are detailed in circular no. SEBI/CFD/DIL/SABA/1/2009/30/12 dated December 30, 2009 available on SEBI website.

Applicability

    ASBA process shall be applicable to all book-built public issues.

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