Page 32 - Banking Finance September 2022

ARTICLE

As of December 3, 2012, 52 Banks are acting as SCSBs. 5- The SCSB shall give a counterfoil as acknowledgment
Investors may submit their ASBA Applications to these SCSBs at the time of submission of ASBA and also the order
in order to apply for Public Issues. Union Bank of India is also number at the time of uploading the details.
one of the SCBSs. Investors can visit SEBI website with the
6- Investor can submit ASBA application to any other
link https://www.sebi.gov.in/sebiweb/other/
designated branch all over India, other than home
OtherAction.do?doRecognisedFpi=yes&intmId=34 to see
branch as well.
that different Self Certified Syndicate Banks (SCSBs) along
7- ASBA facility is compulsory for all issues by Issuer
with the branches offering the services.
8- Any SCSB can also bring public issue and also act as
Benefits of ASBA SCSB.
1. The investor need not pay the application money by 9- Bank can become SCSB by giving certificate that it can
cheque rather block his / her bank account to the discharge the duties and responsibilities of it.
extent of the application money, thus continue to earn 10- SCSB has to get connected with NSE & BSE for secured
interest on application money.
transfer of data from Bank to Stock exchange.
2. The investor does not have to bother about refunds, as
11- SCSB is not required to validate /verify details given in
in ASBA only an amount proportionate to the securities
ASBA.
allotted is taken from the bank account when his / her
12- SCSB is wholly responsible for any omission or
application is selected for allotment after the basis of
commission done during process done through its code.
allotment is finalised.
13- SCSB gets file format for uploading the bids from
3. Customer can revise / withdraw the bid before the end
exchange
of the Issue in the prescribed format with the Bank
14- The SCSB shall send the following aggregate
Basic things to be taken care while information to the Registrar of the Issue after closure
of the bidding period:(i)Total number of ASBAs uploaded
applying for ASBA- by the SCSB(ii)Total number of shares and total amount
1- Only one application can be applied by investor as it is blocked against the uploaded ASBAs
linked with PAN card and it is unique to each individual
15- Stock Exchange electronic bidding system will provide
2- ASBA application can be filled up physical or also through for generation of order number of uploading of bids of
online mode (i.e Internet banking or UPI) IPO/FPO, as such customer can get confirmation for it.
3- Retail investor can also withdraw the application upto 16- Electronic record of ASBA uploaded account blocked/
the closure of issue. While nonretail investors can not unblocked, physical form for period of 6 months with
do so. SCSB for any complaints if any and thereafter the same
may be sent to the issuer.
4- After withdrawal of bid by investor the amount is
instantly unblocked by banks. 17- Once a bank becomes SCSB there is no discretion for it
to select the issues.
18- Registrar will reconcile the data of ASBA on the
aggregate data received from SCSBs after closure of the
issue regarding total number of bids uploaded.
19- ASBA facility should not be made available against any
overdraft facility

Insights on the forthcoming LIC IPO
India’s most prominent insurance company is setting up to
make its Dalal Street entry before the end of this fiscal year.
This IPO is a part of the Indian Government’s plans to
raise Rs. 65,416 crores through disinvestment, which
they have targeted to achieve in this financial year.

32 | 2022 | SEPTEMBER | BANKING FINANCE