Application Supported by Blocked Amount (ASBA)

Application Supported by Blocked Amount (ASBA) is an application made by an investor, containing an authorization to Self-Certified Syndicate Bank (SCSB) to block funds available in applicant’s Savings Bank Account or Current Account (other than Overdraft or loan accounts), for subscribing to an Issue, to the extent of application money, till finalisation of allotment in the issue or till withdrawal/ failure of issue, or till withdrawal/ rejection of application, as the case may be.

It is a supplementary process available for all public issues made through book building route and also to all Debts & Right Issues. ASBA facility can be used for Initial Public Offer (IPO) and Follow-on Public Offer (FPO).

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only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed.

Under ASBA, funds blocked in the account, will continue to earn interest during the application processing period, if held in an interest-bearing account. Bank will mark a lien on the deposit account of the investor to the extent of the application money. The lien will be removed immediately after finalization of the basis of allotment. If bid is successful, the deposit account will be debited and the allotted shares will be transferred by the Company to the applicant’s Demat account.


Most Important Terms & Conditions


An Investor can apply through ASBA, provided he/she:
In public issue :
  • is from any of the approved categories eligible to apply in IPO as per SEBI guidelines.
  • maintain a Savings Bank or Current Account with SBI.
  • has a Demat account with any of the Depository Participants (DPs) and also has a Permanent Account Number (PAN).
  • has sufficient clear credit balance in his/her Savings Bank or Current account to block funds to the extent of application money. i.e. the application amount is blocked only against/ in the funded deposit account and that clear demarcated funds are available for ASBA applications.
  • ASBA facility is not available on any type of overdraft or loan accounts.

In Rights issue :

ASBA facility in right issues will be available to all shareholders of the issuer company as on record date provided if he/she:

  • has a Demat account with any of the Depository Participants (DPs) and also has a Permanent Account Number (PAN).
  • Holds shares in dematerialized form and has applied for entitlements and /or additional shares in the issues in the dematerialized form.
  • Has not renounced his / her entitlement in full or in part,
  • Is not renouncee to the issue,
  • is from any of the approved categories eligible to apply in IPO as per SEBI guidelines.
  • Applies through a Savings/ Current account maintained with the bank.
  • Applies using right application sent by the Company.

Equity :
  • A Retail Individual Investor (Individual, HUF, Employee or shareholder investor applying such that the Bid amount does not exceed Rs 200,000/-, net of discount) can modify, revise or delete the bid within the bidding period. i.e. till the closure of the bid period.
  • All other categories (Qualified Institutional Buyers and Non-Institutional Bidders where the minimum bid size shall be such that the bid amount exceeds Rs.2,00,000/-) can neither withdraw the bid nor lower the size of their bids at any stage. For these categories only, modification/ upward revision is allowed. Deletion facility is not available.
  • Multiple applications by a single investor are not allowed, however an investor can make 5 (five) applications from a single deposit account in the name of different persons.
  • It is not necessary to have a Demat account with SBI for applying through ASBA. Customer having Demat account with other entities can also apply through the SBI- ASBA facility.

Debt :
  • Multiple applications by a single investor are allowed.
  • An investor can withdraw the application during the bidding period but cannot modify the application.

ONLINE ASBA facility :
  • Investor with who have internet banking facility (INB) on their deposit account, with transaction rights can bid on “Onlinesbi” under ASBA facility. For such investors, here is no need to submit physical application form to any branch. Internet Banking users should log on to www.onlinesbi.com and go to e-services >> Demat & ASBA services>> IPO (Equity) ASBA or IPO (Debt) ASBA option.
  • Any SBI customer, who has a Savings or Current Account, can register for Internet Banking facility.
  • All SBI customers, irrespective of the branch where they maintain account, can apply for ASBA through Internet Banking.
  • A hold will be marked on the total amount, at the highest price bid by the applicant.
  • Application money shall remain blocked up to the finalisation on the basis of allotment.
  • Account will be debited after the allotment of shares.

If any information furnished by the applicant is incorrect, the Bid is liable to be rejected and the Bank shall not be liable for losses if any.


Capital Market Branch, Mumbai is the Nodal Branch for ASBA.

Contact Details


Address

State Bank of India
Capital Market Branch
3rd Floor, SBI Mumbai Main Building,
Mumbai Samachar Marg,
Fort, Mumbai 400 001

Telephone

022-22719112, 22719102

Fax

022-22719126, 22719125

Email

sbi.11777@sbi.co.in, nib.11777@sbi.co.in

Contact Person

Dy. Manager