Annexure VI
ASBA- FREQUENTLY ASKED QUESTIONS
FAQs on ASBA for Investors
1. What is“ASBA”?
ASBA means “Application Supported by Blocked Amount”. ASBA is
anapplicationbyaninvestorcontaininganauthorizationtoSelfCertifiedSyndicate
Bank(SCSB)toblocktheapplicationmoneyinthebankaccount,forsubscribing
toanissue.IfaninvestorisapplyingthroughASBA,hisapplicationmoneyshall be
debited from the bank account only if his/her application is selected for
allotment after the basis of allotment isfinalized.
2. 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. Names of such banks would appear in the list
availableon the website of SEBI. At the following link:
http://www.sebi.gov.in/pmd/scsb.pdf
3. Detailed procedure of applying in IPO throughASBA.
Under ASBA facility, investors can apply in any public/ rights issues by using
theirbankaccount.InvestorsubmitstheASBAform(availableatthedesignatedbranc
hes of the banks acting as SCSB) after filling the details like name of the
applicant,PANnumber,demataccountnumber,bidquantity,bidpriceandother
relevant details, to the 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
ASBAformarecorrectotherwisetheformisliabletoberejected.
4. CanImakeapplicationthroughASBAfacilityinallissues?
Yes, you can make application through ASBA facility in all the issues i.e. public
and rights.
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5. Who can apply through ASBAfacility?
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.
Inrightsissues,allshareholdersofthecompanyasonrecorddatearepermitted to use
ASBA for making applications providedhe/she/it:
a. isholdingsharesindematerializedformandhasappliedforentitlements or
additional shares in the issue in dematerializedform;
b. has not renounced its entitlements in full or inpart;
c. is not arenouncee;
d. WhoisapplyingthroughblockingoffundsinabankaccountwiththeSelf
Certified SyndicateBank
6. What is the advantage to an investor if he applies through ASBA vis-à-vis
applying through an application with acheque?
Applying through ASBA facility has the following advantages:
(i) The investor need not pay the application money by cheque rather the
investorsubmitsASBAwhichaccompaniesanauthorizationtoblockthebank
account to the extent of the applicationmoney.
(ii) Theinvestordoesnothavetobotheraboutrefunds,asinASBAonlythat
muchmoneytotheextentrequiredforallotmentofsecurities,isdeductedfromtheb
ankaccountonlywhenhisapplicationisselectedforallotmentafter the basis of
allotment isfinalized.
(iii) 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.
(iv) Theinvestordealswiththeknownintermediaryi.e.itsownbank.
7. IsitmandatoryforretailinvestorstoapplythroughASBAonly?
It is mandatory. A retail investor and non-retail investors i.e. Qualified
Institutional Buyers and Non-Institutional Investors, have to mandatorily make
use of ASBA facility for making application in public/ rights issue.
8. Where should I submit my Application Supported by Blocked Amount
(ASBA)?HowshallIknowwhichbankandwhichbranchofthatbankis the
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designated branch for accepting ASBAapplications?
List of Self Certified Syndicate Banks (SCSBs) and their designed branchesi.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 onthe
website of SEBI (www.sebi.gov.in). The list of SCSB would also be given in the
ASBA applicationform.
9. 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
bankaccount.
10. Howmanyapplicationscanbemadefromabankaccount?
Five(5)applicationscanbemadefromabankaccountperissue.
11. AmIrequiredtosubmitASBAonlyphysically?
No, you can either fill up the physical ASBA form available with SCSB and
submit the same to the SCSB or apply electronically/online through the internet
banking facility.
12. Can I use the existing application form for public issues for applying
throughASBA?
Since November 01, 2011, SEBI has prescribed a single form for ASBA.
13. Can I withdraw my ASBA bids? If yes,how?
Retail individual investors can withdraw ASBA bids. During the bidding period
you can approach the same bank to which you had submitted the ASBA and
requestforwithdrawalthroughadulysignedlettercitingyourapplicationnumber, TRS
number, ifany.
Afterthebidclosureperiod,youmaysendwithdrawalrequesttotheRegistrarto
theissuebeforethefinalizationofbasisofallotment,whowillcancelthebidand instruct
SCSB to unblock the application money in the bank account after the
finalization of basis ofallotment.
However, Non-retail investors i.e. Qualified Institutional Buyers and Non-
Institutional Investors are not eligible to withdraw their bids at any time.
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14. Whom should I approach if I find that I had given all correct details in
the application form, but application has been rejected stating wrong
data?
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 lodge your complaint with SEBI on
http://scores.gov.in/.Alternately,youmaywritetoSEBIatthefollowingaddress:
InvestorGrievanceCell,OfficeofInvestorAssistanceandEducation,
Securities and Exchange Board of India
Plot No.C4-A,'G' Block, BandraKurla Complex,
Bandra (East),
Mumbai: 400051
15. Whether my bank account will be blocked or only the amount to the
extent of application money isblocked?
No,theentirebankaccountwillnotbeblocked.Onlytheamounttotheextentof
application money authorized in the ASBA will be blocked in the bank account.
Thebalancemoney,ifany,intheaccountcanstillbeusedforotherpurposes.
16. If I withdraw my bid made through ASBA, will the bank account be
unblockedimmediately?
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
ismade 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.
17. Do I necessarily need to have a DP account with the SCSB where I
intend to submit the ASBAapplication?
No. It is not necessary to have a DP account with the SCSB, where you are
submitting the ASBA.
18. Can I submit my ASBA to a broker as is being done in the present
issue process applying throughcheque?
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Yes,youcansubmitASBAwitharegisteredbrokerofthestockexchangewhere
thesecuritiesareproposedtobelisted.However,thebrokerswouldonlyupload the
bid and other relevant details of such ASBA forms in the bidding platform
providedbythestockexchangesandforwardtheASBAformstotherespective
SCSBs for blocking thefunds.
19. Can I apply in an issue through ASBA facility and through
“normalexistingsystemofpaymentthroughcheque”inanissue?
An investor can apply only through ASBA.
20. 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 stockexchanges?
Yes.ThebidsreceivedthroughASBAmodewillalsobereflectedinthedemand
graphs displayed in the website of stockexchanges.
21. Who is responsible for errors in the data uploaded in the
electronicbidding system in case of publicissue?
In case there is an error in the data furnished in the application form submitted
byinvestor,theinvestorshallberesponsible.IncasethereisanerrorbySCSB/
Syndicate Member / Registered Broker in entering the data in the electronic
biddingsystemofthestockexchanges,therespectiveentityshallberesponsible.
22. Will I get the acknowledgement of receipt for applications submitted
through ASBA from theSCSB?
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.
23. What happens when the issue fails/iswithdrawn?
In case the issue fails/withdrawn the SCSB shall unblock the applicationmoney
fromthebankaccountsuponreceivinginstructionsfromtheRegistrar.
24. In case of any complaints regarding ASBA application whom can I
approach?
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In case of any complaints the investor shall approach the bank, where the
application form was submitted or the Registrar to the issue.
25. Incaseapersonishavingbankaccountwithabranch,forexample,at
Kolkata can he submit IPO application through ASBA at a branch
ofthe bank inGuwahati.
Yes,thiscanbedoneprovidedthatyourbankhavecorebankingfacilityandthe
ASBAformissubmittedatabranchwhichisidentifiedasdesignatedbranchby
thebank.
26. What if the SCSB is not the applicant’sbanker?
In case investor does not have an account with any of the SCSBs, then he
cannot make use of the ASBA facility.
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