We have started Our Learning Series on How to Apply ASBA through Bank Account and getting it credit to any DMAT Account. Now in this post we are going to brief you on How To Apply For BSE and NSE SME IPO.
We tried to find out at many places on how to apply for BSE and NSE SME IPO’s but unfortunately we couldn’t find much of information. AS SME IPO’s are not coming very actively and getting some good interest, so getting to know on how to apply for BSE and NSE SME IPO is really important.
First Lets Understand ASBA:
ASBA is a supplementary process for applying in public issues. ASBA facility can be use 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.
Then the lien will be remove immediately after finalization of the basis of allotment. If bid is successful, the deposit account will be debited and the shares allotted will be transferred to the applicants Demat account.
An Investor can apply ASBA through Bank, provided he/she:
Is from any of the approved categories eligible to apply in SME IPO as per SEBI guidelines.
Maintain a Savings Bank or Current Account with Bank.
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.
How To Apply For BSE And NSE SME IPO:
- Visit the nearest designated Bank branch to apply for an SME IPO through ASBA. It is not essential to hold an account in the same branch, the account can be with any 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 SME (BSE SME) and National Stock Exchange (NSE). Please find below the links to apply for the same:
Click here to download the form through BSE SME
Click here to download the form through NSE
- Then Bank account number, PAN, Demat account particulars, etc. need to be fill in the ASBA application form of the SME IPO and submit to the branch.
- Subsequently, the bank will block the amount in the specified Bank account for the applied SME IPO and send the application information to the designated stock exchange for that SME IPO.
- The customer shall be responsible a) for maintaining sufficient funds equivalent to the SME IPO application amount in his/her account. b) for furnishing correct & accurate details in the ASBA application form of the SME IPO.
- Then in case of insufficient amount in the bank account or any discrepancy in the application form, the bank shall reject the SME 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 ASBA For BSE and NSE SME IPO . We will be writing more about this series.
5 SME IPO are either active for bidding or are planned within a week time including Mitsu Chem Plast Ltd IPO , Madhya Bharat Agro Products Ltd IPO, Sprayking Agro Equipment Ltd, Narayani Steels Ltd IPO and Spicy Entertainment And Media Ltd (SEML) .
There are some good stocks in Pipeline this year including BSE itself coming with its own IPO. BSE will be selling its shares on index and traded on exchange.
So Keep watching this blog to keep yourself updated with all the news.
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