11 BFIs committed for ASBA system; more BFIs in pipeline

Securities Board of Nepal (SEBON) has provided approval to 11 Banks and Financial Institutions (BFIs) to be a part of Applications Supported by Block Amount (ASBA) system. In addition, 6 more BFIs have applied to enroll in the system. More BFIs are in the process of submitting applications to the system. BFIs committed for ASBA so far are:

1. Century Commercial Bank Ltd.
2. Sunrise Bank Ltd.
3. KailashBikas Bank Ltd.
4. Ace Development Bank Ltd
5. Citizens Bank International Ltd.
6. Laxmi Bank Ltd.
7. Sanima Bank Ltd.
8. Siddhartha Bank Ltd.
9. NIC Asia Bank Ltd.
10. Nepal Bangladesh Bank Ltd.
11. Kumari Bank Ltd.

The Boardwill be implementing Application Supported by Blocked Amount (ASBA) system from Magh 1, 2073. Also, the Board has fixed application fee for the same purpose.Under this system, investors applying for IPO up to Rs 50,000 will have to pay Rs 150 as application fee. Likewise, Rs 250 will be charged per application if the amount exceeds Rs 50 thousand. With the implementation of ASBA system, investors applying for Initial Public Offerings (IPO) and Further Public Offering (FPO) to apply it online who have bank account in commercial and national level development banks. Investors can apply for the IPO/FPO online as the amount worth application will be blocked in the investor’s respective account.