ASBA is now a very much spoken term if you are in IPO investment as, as per new rule of SEBI you can’t invest in IPO directly and all investments will be done by ASBA only.
ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.
Because of this many stock broker firms are asking their clients to shift their Bank Accounts to their banks and telling their investors that this is the only way to invest in IPO.
But through this post we want to inform all the investors that this is not the case we can invest in IPO through our Bank accounts also and can get the shares credited in our DMAT account of any Stock Broker in India.
To educate our precious visitors for same we are starting this learning series and will be telling one by one how to apply to ASBA through different banks.
To Start with the first bank we are taking HDFC Bank hope this will be helpful to all the investors.
- If you are an HDFC Bank NetBanking customer, you can now apply online. Log in on NetBanking and select the “IPO Application” option from the bottom left menu under “Request” Tab. You will then be re-directed to our IPO Online System.
- The IPO Application is only for individuals and applications cannot be made on behalf of a Corporate, HUF, Trust, etc.
- Please note that the sequence of names of the applicants should be as per the sequence of names held with the Depository account.
- By default, the NetBanking user will be that of the 1st applicant.
- A hold will be marked on the total amount, at the highest price bid by the applicant.
- Application money will remain blocked up to the finalization on the basis of allotment.
- Account will be debited post the allotment the shares.
- Please ensure that the name on the PAN card matches with the Demat Holder’s name.
Apply through Physical Application
- Visit the nearest designated HDFC Bank branch to apply for an IPO through ASBA. It is not essential to hold an account in the same branch, the account can be held with any HDFC Bank branch.
- ASBA bid-cum application forms are available for download and printing, from websites of the Stock Exchanges which provide electronic interface for ASBA facility i.e. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Please find below the links to apply for the same:
Click here to download the form through BSE
Click here to download the form through NSE
- HDFC Bank account number, PAN, Demat account particulars, etc. need to be filled in the ASBA application form of the IPO and submitted to the branch.
- Subsequently, the bank will block the amount in the specified HDFC Bank account for the applied IPO and send the application information to the designated stock exchange for that IPO.
- The customer shall be responsible for maintaining sufficient funds equivalent to the IPO application amount in his/her account and for furnishing correct & accurate details in the ASBA application form of the IPO.
- In case of insufficient amount in the bank account or any discrepancy in the application form, the bank shall reject the IPO application and shall not be able to send the bid to the stock exchange.
- In case of any enquiry, the application/reference number, mentioned on the acknowledgement slip handed over at the time of the application, needs to be provided.
Hopefully the above all information will help all the investors to apply through ASBA from HDFC Bank. We will be writing more about this series and will tell you How to Apply ASBA online through other Banks also.
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