Implementation of C-ASBA in full-swing; no charge to be incurred upon investors

All public offerings from Falgun 11 will have to be floated through Centralized Applications Supported by Blocked Amount (C-ASBA) system. According to the press statement from CDS and Clearing Ltd, public companies floating initial public offering (IPO) and follow-on public offering (FPO) must issue their shares through the new system which is believed to be faster, easier and simpler for investors as well as member bank and financial institutions and issue managers. The new system, which is an upgraded version of the Applications Supported by Blocked Amount (ASBA), allows investors to apply primary shares through a uniform process at all ASBA members which is operated in a centralized way by the CDSCL. Under C-ASBA, all institutions involved in the public issue process are woven under the centralized electronic system operated by the CDSCL through computer software. The mandatory implementation of the C-ASBA has also enabled investors to apply such shares online. Now, investors will have both the options -- through bank and financial institutions (BFIs) and online (using https://meroshare.cdsc.com.np) -- to submit application for the new IPO or FPO of any public company. Under the C-ASBA system, investors should first get C-ASBA Registration Number (CRN) from BFIs who provide such number after verification of demat account and bank details. To apply shares, investors will have to visit the BFIs, fill up their CRN Number, applied units of shares and demat account number. BFIs make an entry and confirm the application instantly, according to Gupta. Similarly, the application of shares can also be made online if an investor gets registered with C-ASBA portal - https://meroshare.cdsc.com.np/ Investors do not need to pay any amount for applying shares through the C-ASBA. However, a registration fee of Rs 50 has to be deposited in case s/he opts for online C-ASBA service through meroshare. Press release