Tuesday, August 5, 2008

SEBI introduce a new 'ASBA' payment method for retail IPO investors

Hello Friends,

Introduced in July 2008, Applications Supported by Blocked Amount (ASBA) Process, is the alternative payment method (optional) for IPO application where the IPO bidding amount remains in investors account, but blocked by the bank until allotment is done. If there is no allotment, the amount would be released by bank, and the investor could be able to use it immediately.

This is an additional method of payment available exclusively to retail individual investors through participatory banks (SCSB's). Banks would be required to register themselves in the SCSB list, which would be available on SEBI's website. The purpose of adding this new payment option is to reduce the turn around time for IPO Stock listing and to make the refund process faster.

Find more information about ASBA payment option

Good Luck!
Chittorgarh.com Team