Applications Supported by Blocked Amount (ASBA)

Applications Supported by Blocked Amount (ASBA)

ASBA means Applications Supported by Blocked Amount. ASBA is an application made by an investor, containing an authorization to Self-Certified Syndicate Bank (SCSB) to block the application money in the investors bank account for subscribing to an issue to the extent of application money, till withdrawal/failure/rejection of the application by the exchange (as the case may be) or till the finalization of allotment in the issue.

• If an investor is applying through ASBA, his/her application money shall be debited from the bank account only if his/her application is selected for the allotment after the basis of allotment is finalized.
• Under ASBA, the blocked/lien marked funds continue to earn interest and only the allotted amount is debited after finalization of the basis of allotment.
• ASBA is available for public issues made through book building route for all Initial Public Offer, Follow-on-Public Offer, Rights Issues and Debts.

ASBA Facility - Simple, Instant, Secure.

Bank of Baroda is offering ASBA Facility through -

• All Branches
• Mobile Banking Channel- Baroda Connect
• Net Banking Channel – bob World
• UPI Channel

Benefits to Customers

• Management: Money stays in your account until shares are allotted.
• Convenience: Apply from anywhere, any time through online banking.
• Efficiency: Faster processing with direct fund blocking.
• Security: ASBA is regulated by SEBI, ensuring adherence to investor protection guidelines. 
• Digital Platform: ASBA is regulated by SEBI, ensuring adherence to investor protection guidelines. 
• Regulatory Compliance: ASBA is regulated by SEBI, ensuring adherence to investor protection guidelines. 

Key Features

• Funds remain in your bank account during IPO Application.
• This service is completely free of charge.
• Direct Funds blocking and eliminates the waiting period like Cheques / ECS.
• No refund delays – seamless unblocking of funds
• Continue to earn interest on blocked amount (as per account type) Safe and secure SEBI-regulated process
• Available for Retail, HNI and other investor categories.
• Easy online application via Net Banking and Mobile Banking which are available 24/7 except closing day of the IPO.
• Transparent tracking of application status.

Eligibility Criteria

An Investor shall be eligible to apply through the ASBA process, if he/ she:

• Belongs to an approved eligible investor category as per SEBI guidelines.
• Maintains Savings or Current Account with Bank of Baroda.
• Has a Demat account with any Depository Participant (DP) along with valid Permanent Account Number (PAN)
• Has sufficient clear balance in his/her saving or current account to block the IPO application amount.
• Is using the funds from own account (not overdraft/loan account or third-party account).

Modes available for investor for applying in IPO, FPO, Rights Issue and Non-Convertible Debenture (NCD):

General Guidelines:

• To make the process of applying for Public Issues efficient and protect the interest of investors applying for an Initial Public Offer issue - Application Supported by Blocked Amount was introduced in 2008, as per Securities and Exchange Board of India Guidelines.
• To make the process of applying for Public Issues efficient and protect the interest of investors applying for an Initial Public Offer issue - Application Supported by Blocked Amount was introduced in 2008, as per Securities and Exchange Board of India Guidelines.
• From 01.09.2022 blocking of application money in the investor’s bank account is mandatory for processing of ASBA applications in public issue of equity shares and convertibles.
• Investor can either fill and submit the physical ASBA application through his/her Saving/Current Account to any of the SCSB or apply Online through Internet Banking, Mobile Banking or UPI facility.

Link of the Video

• How to apply ASBA through Net Banking
  https://youtu.be/6faZWC9JkL0?si=3mWk_GLXkx80hFbA
• How to apply ASBA through Mobile Banking
  https://youtu.be/SLLZZzQGeYU

SEBI circulars

• Sebi circular on asba dated 30th july 2008 PDF
  503 KB
• SEBIHOOIAEOIAE-IAD-1PCIR2023131 PDF
  503 KB
• SEBIHOOIAEOIAE-IAD-3PCIR2023195 PDF
  503 KB

Smart ODR URL

• https://smartodr.in/login

Process for Online application by online user

Customer can avail the ASBA Facility through bob World Mobile app and Net Banking Channel.

• Please login to your bob World Mobile app > Invest > Invest in IPOs.
• Please login to your Internet Banking > Investments > IPO > Apply for IPO.

Investor Registration Option

Users to once register (create) the investor details such as Investor Name, Depository Detail DP ID & Client ID and PAN Number.

This is a one-time creation and can be used for all future subscriptions to IPO’s etc. The investor creation in the menu will save time at the time of subscribing in future issues and would also avoid any omission or typographical mistakes that usually reject applications.

• The menu shall display all the current IPO’s issues open for subscription.
• Users to click at IPO issue which he/she intends to subscribe in the displayed list.
• Details of the IPO selected are displayed.
• User to select Investor name, account no. and investment category from dropdown.
• User to input bid quantity, price per share. User can bid 3 price options. On clicking on calculate bid amount, the highest bid amount of the 3 options will be displayed. This shall be the amount for which the lien will be marked in the selected account.
• Only retail individual investors (employee and shareholders also included) can bid at cut-off price.
• User to ensure that bid is in marketable lot and the bid amount is within minimum and maximum bid amount given in the price band of the issue.
• Details - as per investor registration is displayed. Click on submit button.
• Acknowledgement receipt is displayed and is printable.

Subscribe to an IPO - Apply through Physical Application

• Visit the nearest Bank of Baroda branch to apply for an IPO through ASBA.
• ASBA bid-cum application forms are available for download and printing, from websites of the Stock Exchanges which provide electronic interface for ASBA facility i.e. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
• Bank of Baroda account number, PAN, Demat account particulars, etc. need to be filled in the ASBA application form of the IPO and submitted to the branch.
• Subsequently, the bank will block the amount in the specified Bank of Baroda account for the applied IPO and send the application information to the designated stock exchange for that IPO.
• The customer shall be responsible for maintaining sufficient funds equivalent to the IPO application amount in his/her account and for furnishing correct & accurate details in the ASBA application form of the IPO.
• In case of insufficient amount in the bank account or any discrepancy in the application form, the bank shall reject the IPO application and shall not be able to send the bid to the stock exchange.
• In case of any enquiry, the application/reference number, mentioned on the acknowledgement slip handed over at the time of the application, needs to be provided.

Investor Can Modify/Withdraw ASBA bids:

Nodal Office Details:

Bank of Baroda
ASBA Operations, Retail Liabilities
Baroda Sun Tower, 1st Floor, C34, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai – 400051
Phone: 022 6698 4916
Email: asba.fortap@bankofbaroda.com

Download ASBA Forms

• NSE Website: https://www.nseindia.com/market-data/all-upcoming-issues-ofs-rights
• BSE Website: https://www.bseindia.com/publicissue.html
• SEBI FAQ: Click here: https://www.sebi.gov.in/sebi_data/commondocs/asbaprocess1_p.pdf