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How To Apply ASBA Through SBI Bank

As We have started Our Learning Series on How to Apply ASBA through Bank Account and getting it credited to any DMAT Account. So Now in this post we are going to brief you on How To Apply ASBA Through SBI Bank.

We are taking one bank by one and taking larger banks first who have more reach as this will be going to help each of you in applying and getting understanding benefits of ASBA in long run.

ASBA is a supplementary process for applying in public issues. ASBA facility can be used for Initial and Follow-on Public Offers (IPO and FPO), Rights Issues, and Debt Issues. Under ASBA, funds will continue to earn interest during the application processing period, if held in an interest bearing account.

Bank will mark a lien on the deposit account of the investor to the extent of the application money. The lien will be removed immediately after finalization of the basis of allotment. If bid is successful, the deposit account will be debited and the alloted shares will be transferred to the applicants Demat account.

An Investor can apply ASBA through SBI Bank, provided he/she:

Is from any of the approved categories eligible to apply in IPO as per SEBI guidelines.

Maintain a Savings Bank or Current Account with SBI.

Has a Demat account with any of the DPs along with Permanent Account Number (PAN).

Has sufficient clear credit balance in his/her Savings Bank or Current account for application money. ASBA facility is not available on any type of overdraft or loan accounts.

Important Points
Equity:-

> A Retail Individual Investor (Individual, HUF, Trust, Employee or shareholder who applies up to Rs 200,000/-) can also modify, revise or delete the bid within the bidding period.

> Investors from all other categories cannot withdraw / delete the application and can modify / revise the bid only for a higher amount.

> Multiple applications by a single investor are not allowed, however an investor can make 5 applications from a single deposit account in the name of different persons.

Debt:-

> Multiple applications by a single investor are allowed.

> An investor can withdraw the application during the bidding period but cannot modify the application.

> An Investor can make 5 applications from a single deposit account in the name of different persons.

ONLINE ASBA facility

> User can apply electronically without the need of any physical application form. Internet Banking users should log on to www.onlinesbi.com and go to e-services> IPO (Equity) ASBA or IPO (Debt) ASBA option.

> It is not necessary to have a Demat account with SBI for applying through ASBA. Customer having Demat account with other entities can also apply through the SBI- ASBA facility.

> All SBI customers, irrespective of the branch where they maintain account, can apply through Internet Banking. Any SBI customer, who has a Savings or Current Account, can register for Internet Banking facility and apply for ASBA.

Apply through Physical Application:

  • Visit the nearest designated SBI 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 SBI 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
  • SBI 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 SBI 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 SBI Bank. We will be writing more about this series and will tell you How to Apply ASBA online through other Banks also.

So till then keep visiting this blog and don’t forget to subscribe for the updates otherwise you might miss some News or information of IPO Market. Also if you want to Win a Smart Phone don’t forget to like and share us on Facebook.

 

7 Comments

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  1. Very useful information. The application forms do not provide that clarity about ASBA.
    One question: Can one submit the physical form, say for rights issue, to any bank branch or is to be submitted to a branch which has Demat facility?

    1. You can Visit the nearest designated 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 with any Bank branch.

  2. SBI ASBA has been moved from the said page fro ICICI PRU IPO, (2.40PM, 21/9/2016) at this point of time it shows only one i.e. HP Ele. Where as issue closes at 4 PM 21/9/2016.

  3. SBI ASBA has been moved from the said page for ICICI PRU IPO, (2.40PM, 21/9/2016) at this point of time it shows only one i.e. HP Ele. Where as issue closes at 4 PM 21/9/2016.

    1. Sir,
      All banks have different timing to close the online ASBA of an IPO. As of now online ASBA forms are closed. However you can check with the bank itself they might be accepting offline asba forms.

  4. how to cancel ipo bid through sbi online?

    1. Just login to your online account from where you have applied and there will be option for cancelling the bid for IPO

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