Frequently Asked Questions (FAQ) for ASBA IPO/FPO Payment Option

 

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 IPO/FPO share 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.

Is it mandatory to maintain Bank account for applying IPO/FPO shares through ASBA system?

Yes it is mandatory to open Bank account for applying IPO/FPO shares through ASBA system. IPO/FPO application should not proceed if the investor has not maintained Bank account.

Is it mandatory to maintain Depository Participants (DP)DMAT account for applying IPO/FPO shares through ASBA system?

Yes it is mandatory to open DP/DMAT account for applying IPO/FPO shares through ASBA system. IPO/FPO application should not proceed if the investor has not maintained DP account in any institutions.

I have maintained DP/DMAT account in other institutions like other Bank’s/Brokers/Capital Market. Can I process IPO/FPO shares from NIC ASIA Bank Limited?

It is mandatory to have DP/DMAT account for applying IPO/FPO shares through ASBA system which was opened in any institutions. You can process IPO/FPO shares from NIC ASIA Bank’s branches but you must have maintained Bank account with us.

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

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

I have account maintained at NIC ASIA Bank Limited. Can I submit ASBA in any of the banks specified in the list of SEBON?

No, ASBA can be submitted to the NIC ASIA Bank’s Branches only with which the investor is holding the bank account. If the account holder has maintained Bank account with other banks, they shall apply IPO/FPO application from the Bank where they have maintained their own Bank account.

Who can apply through ASBA facility?

All account holders who have maintained saving/call account with us can apply through ASBA facility.

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.

Can I make application through ASBA facility in all issues?

Yes, you can make application through ASBA facility in all the IPO/FPO issues.

Where should I submit my Application Supported by Blocked Amount (ASBA)?

You can submit your application at all the branches of NIC ASIA Bank.

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.

Can I apply in an IPO/FPO issue through “normal existing system of payment through cheque” atNIC ASIA Bank branches?

No. An investor can not apply IPO/FPO issue through “normal existing system of payment through cheque” at NIC ASIA Bank branches. We shall only accept the application routed through ASBA system.

Who is responsible for errors in the data/informationmentioned in the IPO/FPO share application form? 

In case there is an error in the data furnished in the application form submitted by investor, the investor shall be solely responsible in such cases.

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

Yes. The NIC ASIA Bank shall give a counterfoil as an acknowledgement after verifying Bank details at the time of submission of ASBA.

What happens when the issue fails/is withdrawn?

In case the issue fails/withdrawn, the NIC ASIA Bank shall unblock the application money from the bank accounts upon receiving instructions from the Registrar.

What documents are required to submit ASBA Application?

No other additional documents are required to submit ASBA application besides the duly filled application form. NO citizenship / photo is required.

Copy of Citizenship / Photo is required or Not?

No. Copy of Citizenship/ Photo is not required as these documents are already obtained by the bank during account opening/ KYC update. Thus, it is the duty of the bank staff to ensure that KYC of the customer applying for ASBA is updated.

Can a customer deposit clearing cheque while applying for ASBA?

Since this is the system of accepting applications by blocking available amounts in the customer accounts, we should accept applications only if the account balance is greater than or equal to the application amount. If the customer intends to deposit clearing cheque for ASBA, the customer must be communicated that applications could be accepted only upon realization of the cheque.

What is the mechanism of collecting charges?

For collecting charges, customer accounts must be debited. If the customer intends to pay cash, do not accept the cash amount; instead ask the customer to deposit the same in his/her bank account.v