Doubts and Ques­tions

Consumer Voice - - Things To Know About Asba -

With ef­fect from 1 May 2010, all in­vestors can ap­ply through ASBA in public is­sues. In rights is­sues, as of date all share­hold­ers of the com­pany are per­mit­ted to use ASBA for mak­ing ap­pli­ca­tions pro­vided he/she/it: a) is hold­ing shares in de­ma­te­ri­al­ized form and has ap­plied for en­ti­tle­ments or ad­di­tional shares in the is­sue in de­ma­te­ri­al­ized form b) has not re­nounced the en­ti­tle­ments in full or

in part

c) is not a re­nouncee to the is­sue d) ap­plies through a bank ac­count main­tained

with SCSBs Ap­ply­ing through ASBA vis--a`vis Ap­ply­ing through an Ap­pli­ca­tion with a Cheque

Ap­ply­ing through ASBA fa­cil­ity has the fol­low­ing ad­van­tages: a) The in­vestor need not pay the ap­pli­ca­tion money by cheque; rather, the in­vestor sub­mits their ASBA, which in­cludes an au­tho­riza­tion to block the bank ac­count to the ex­tent of the ap­pli­ca­tion money. b) The in­vestor does not have to bother about re­funds – in ASBA, money to the ex­tent re­quired for al­lot­ment of se­cu­ri­ties is taken from the bank ac­count only when one’s ap­pli­ca­tion is se­lected for al­lot­ment af­ter the ba­sis of al­lot­ment is fi­nal­ized. c) 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. d) The ap­pli­ca­tion form is sim­pler. e) The in­vestor deals with a known in­ter­me­di­ary –

that is, their own bank.

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 a bank ac­count.

How many ap­pli­ca­tions can be made from a bank ac­count?

Five ap­pli­ca­tions can be made from a bank ac­count per is­sue. Am I re­quired to sub­mit ASBA only phys­i­cally? You can ei­ther fill up the phys­i­cal ASBA form avail­able with an SCSB and sub­mit the same to the SCSB, or ap­ply elec­tron­i­cally/online through the In­ter­net bank­ing fa­cil­ity (if pro­vided by your SCSB).

Can I use the ex­ist­ing ap­pli­ca­tion form for public is­sues for ap­ply­ing through ASBA?

The ap­pli­ca­tion form for ASBA is dif­fer­ent from the ex­ist­ing ap­pli­ca­tion form for public is­sues. The ap­pli­ca­tion forms are avail­able with des­ig­nated branches of SCSBs. In case of rights is­sue, there is no sep­a­rate form for ASBA. The in­vestor has to ap­ply by se­lect­ing the ASBA op­tion in Part A of the com­pos­ite ap­pli­ca­tion form.

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

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