APPLICATION SUPPORTED BY BLOCKED AMOUNT (ASBA)
Application Supported by Blocked Amount (ASBA)
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 their bank account while subscribing to the issue.
- Features & Benefits
- How to register?
- Application money remains in investor's account till allotment is finalized and 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 is on daily balance).
- No need to write Cheques and DD towards application money
- Investors need not bother about refunds as money remains in the account and once allotment is made the required money for the allotment will be paid to the company/issuer/Registrars. Any amount blocked will be subsequently released.
- Application form is simpler than the conventional one. For online applying no form is required.
- ASBA Facility is available to all Federal Bank customers
- Open a Saving Banks or Current Account with us and opt for FedNET and apply online through our ASBA Module.
- Customers without FedNET facility shall submit physical applications to any of our branches.
KYC registration and ASBA (Application Supported by Blocked Amount) has been made as the mandatory payment mechanism for all investors including retail investors for public issues opening on or after 01st Jan 2016.
Prevent Unauthorized Transactions in your demat account - Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDL on the same day. Issued in the interest of investors.
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account