SEBON amends ASBA directive; reduces ASBA charge & instructs BFIs to provide online applications

SEBON had implemented Applications Supported by Blocked Amount (ASBA) system from Magh 1, 2073 for public issues (IPO/FPO) and investors have provided overwhelming response for the system. In the context that more than 60% of the applications amount is being applied through ASBA, BFIs and investors have requested to make this system mandatory in 75 districts. Issuing a press statement, SEBON said that after implementation of ASBA system, it has identified the problems and is working to make it easier and reliable. In light of this, SEBON is working to include government-owned commercial banks into the fold so that the ASBA facility is expanded to all 75 districts from 73 districts. It has also reduced the maximum fee (up to Rs 250 per application) down to a maximum of Rs 100. Likewise, it has slashed the issue manager fee to Rs 10 and has completely cancelled the SEBON fee. SEBON has made following amendments in ASBA system: