How to apply for Forward Community Microfinance IPO using ASBA (Step-by-Step Process)
Thu, Jan 19, 2017 3:25 PM on Latest, IPO/FPO News, Featured, Stock Market,
21 commercial banks and 9 development banks have received approval for Applications Supported by Blocked Amount (ASBA) system from SEBON. Interested applicants can provide application on the ASBA form from 1,507 branches in 73 districts all over Nepal. SEBON is rolling out with the system from the IPO of Forward Community Microfinance Bittiya Sanstha Limited.
Here is a step-by-step process to apply for an IPO using the ASBA system process:
The application forms can be availed from the nearest branch of the bank that has been approved for the ASBA system. Currently, there are a total of 30 commercial banks and development banks with their 1,507 branches that have been approved. A sample form for ASBA process for Citizens Bank has been shown below:
The ASBA form needs to be filled up with the applicants details, their bank account number maintained in the respective bank, their demat account number, and the details of how many shares they wish to apply for.
This form is to be submitted to the ASBA-approved branch of the bank. The bank then withholds the applied money in the applicant’s bank account, and provides the slip (ardhakatti) on the bottom from the ASBA form.
Applicants do not need to fill up another application form, or visit other collection centers to complete the application process. The same ASBA form acts as the application for the IPO.
The bank will charge Rs 100 per application form.
Advantages of ASBA Process:
The ASBA form needs to be filled up with the applicants details, their bank account number maintained in the respective bank, their demat account number, and the details of how many shares they wish to apply for.
This form is to be submitted to the ASBA-approved branch of the bank. The bank then withholds the applied money in the applicant’s bank account, and provides the slip (ardhakatti) on the bottom from the ASBA form.
Applicants do not need to fill up another application form, or visit other collection centers to complete the application process. The same ASBA form acts as the application for the IPO.
The bank will charge Rs 100 per application form.
Advantages of ASBA Process:
- No need to carry cash or cheque
- Interest of the blocked amount will still be accrued in the same bank account of the applicant
- Only the allotted amount will be debited from the bank account after allotment
- No need to stay in line for hours to submit application or collect refund
- Applicants need to pay Rs 100 per application form to their bank
