SEBON makes ASBA mandatory from Shrawan 1; allotment to conclude within 20 days
- ShareSansar, May 12, 2017 on Featured , IPO News , Latest , Share Allotment , Stock Market
Securities Board of Nepal (SEBON) has made ASBA (Applications Supported by Blocked Amount) process mandatory for all public issues (IPO/FPO/mutual funds), starting from Shrawan 1, 2074. Starting from Shrawan 1, applications for all public issues should be made through ASBA-approved banks and financial institutions. After this, time frame for allotment of shares will also be reduced to just 20 days.
Issuing a press statement, SEBON said that it implemented this regulation in light of increasing interest and participation for ASBA system. Since the Board made ASBA compulsory from Magh 1, 2073; 7 public issues have accepted the applications through ASBA and many with almost 64% applications coming from ASBA alone. Further, 52 banks and financial institutions (including all commercial banks) have received approval from the board and ASBA has reached all 75 districts. Moreover, the fees for ASBA has been reduced by several BFIs with a handful providing the service for free.
After this provision, the allotment of shares that used to take up to 70 days will now be able to be completed within 20 days, added the press statement.