Bank of Maharashtra : Procedure For ASBA Facility
Organization :Bank of Maharashtra
Facility :Procedure For ASBA Facility
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Home Page : http://www.bankofmaharashtra.in/default.asp
For More Details get here :http://www.bankofmaharashtra.in/asba.asp
Procedure For ASBA Facility :
An Investor friendly way to apply for Primary markets & Keep earning interest without parting your money until stocks are allotted.
Related : Bank of Maharashtra Online NPS Account Opening Application : www.statusin.in/2883.html
What is ASBA :
** ASBA means “Application Supported by Blocked Amount”, enables investors to apply for IPOs / FPOs and rights issues without making a payment. Instead, the amount is blocked in investors’ own account and only an amount proportionate to the shares allotted goes out when allotment is finalized.
** It is a supplementary process of applying in initial public offers (IPO), right issues and follow on public offers (FPO) made through book building route and co-exists with the current process of using cheque as a mode of payment and submitting applications.
** Bank is providing this value added service free of costs for issues with book building at BSE.
Eligibility of Investors :
** An application can have up to three bid options & it can be revised also. The lien will be marked on the highest value of the three bids.
** Bids at cut-off price allowed only if total application Amt is less than or equal to Rs. 2,00,000 for investor category of Individual, Employee, Share holders.
** One account can be blocked for maximum five applications in an IPO.
** Revision and cancellation of bids for retail individual investors are permitted till the issue closure date and time. However for investors other than Retail, the revision is not permitted on the last day beyond 4 P.M.
Such investors are referred as “ASBA investors”, at the time of submitting ASBA application the investors should take utmost care to provide the correct –
** PAN
** DP ID
** Client ID
** Bid Quantity
** 11 digits Bank Account number (Saving / Current)
Benefits of ASBA to Investors :
** The investor need not pay the application money by cheque rather block his/her bank account to the extent of the application money, thus continue to earn interest on application money.
** The investor does not have to bother about refunds, as in ASBA only an amount proportionate to the securities allotted is taken from the bank account when his/her application is selected for allotment after the basis of allotment is finalized.
** The application form is simpler.
** The investor deals with the known intermediary i.e. his/her own bank.