ASBA system soon to enable IPO/FPO application submission online; allotment to conclude within a month

Investors, applying for Initial Public Offerings (IPO) and Further Public Offering (FPO) will no longer have to queue up, having 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. Securities Board of Nepal (SEBON) is in the process of introducing Applications Supported by Blocked Amount (ASBA). Also the Board is preparing an easy modality for the implementation of the system which is very popular in foreign countries. As per Niranjaya Ghimire, Deputy Director of the Board, ‘If ASBA system comes into implementation, the allotment of public issues will be completed within a month.’ Earlier it took at least 70 days for a company to complete IPO process. As for now, commercial banks and national level development banks will be included for the implementation of the system.