Application Supported by Blocked Amount (ASBA)
Facility for the investors to apply for IPOs/Rights Issues
The Scheme ASBA (Application Supported by Blocked Amount) is a process for applying to public/rights issues submitted by investors by blocking the application money in his bank account while subscribing to the issue. The facility is offered by Federal Bank through online as well as by physical submission of application forms at designated branches. The physical application forms will be available at these selected branches. By this the Bank became one among the few Banks in the country to offer such facility.
For accessing online facility, the investor should have a Savings Bank Account / Current Accounts / Over Draft account and FEDNET online banking facility. Those who have not registered for FEDNET can submit Net Banking Application at any of our branches. Physical ASBA facility is being offered through the following designated branches:
- Ernakulam/Marine Drive
- Chennai/Mount Road
- Mumbai/Dadar
- Kolkata/R N Mukherjee Road
- New Delhi/Connaught Circus
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Click here for ASBA Physical Application provided by NSE of India Ltd - for NSE
Click here for ASBA Physical Application provided by BSE of India Ltd - for BSE
For Branch contact details please visit Branch/ATM page
The investor stands to get lot of advantages in the ASBA process:
1.Application money remains in investor’s account till allotment is finalized and he continues to earn interest on the application money in SB Account till the amount is transferred to the Registrars on allotment (From 01/04/2010 interest on SB accounts are on daily balance).
2.Investors need not write cheques or purchase Demand Drafts (DD) towards application money.
3.Investor need not bother about refunds since money remains in his/her account and once allotment is made the required money for the allotment will be paid to the company/issuer/Registrars and otherwise the amount blocked will be released.
4.Application form is simpler than the conventional one. For online applying no form is required.
5.Investor deals with his own bank only, with whom his confidence level is high.
ASBA facility in Federal Bank is available to all investors who are banking with us.