23 October 2009
SEBI vide its circular no. SEBI/CFD/DIL/DIP/31/2008/30/7 July 30, 2008 introduced a supplementary process of applying in public issues, viz., the “Applications Supported by Blocked Amount (ASBA)†process.
The ASBA process shall be available in all public issues made through the book building route.
The main features of ASBA process are as follows:
Meaning of ASBA: ASBA is an application for subscribing to an issue, containing an authorisation to block the application money in a bank account. Self Certified Syndicate Bank (SCSB): SCSB is a bank which offers the facility of applying through the ASBA process.
24 October 2009
I would like to supplement a little.
When application is made for shares in a public issue/right issue, the application money is retained in the bank account of the applicant till disposal of the application. The amount is blocked in the applicant's bank account during the relevant period.
On allotment, the proportionate amount gets transfered to the issuer from the blocked account and balance amount, if any, are released.
CAclubindia
