Application Supported by Blocked amount

SEBI has recently introduced a new process popularly referred to as ASBA (Application Supported by Blocked amount) process. Under this process, the bid amount is blocked in your account at the time of bidding. If and when an allotment is made against your application to the extent of money due on the shares allotted, your account will be debited and the money will be remitted to the company. Therefore, the bid amount remains in your account earning interest during the whole process period. Your account will be debited only to the extent of shares allotted, if any, and the remaining amount will be unblocked. There will be no refund as such and therefore the problems related to non-receipt of refund will not be encountered by you. This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI. Currently the following banks have been identified as SCSB banks.

#	Name of the bank	#	Name of the bank
1.	Axis Bank Ltd	19.	Kotak Mahindra Bank Ltd.
2.	State Bank of Hyderabad	20.	Bank of India
3.	Corporation Bank	21.	CITI Bank
4.	State Bank of Travancore	22.	IndusInd Bank
5.	IDBI Bank Ltd.	23.	Allahabad Bank
6.	State Bank of Bikaner and Jaipur	24.	Karur Vysya Bank Ltd.
7.	YES Bank Ltd.	25.	The Federal Bank
8.	Punjab National Bank	26.	Indian Bank
9.	Deutsche Bank	27.	Central Bank of India
10.	Union Bank of India	28.	Oriental Bank of Commerce
11.	HDFC Bank Ltd.	29.	Standard Chartered Bank
12.	Bank of Baroda	30.	J P Morgan Chase Bank, N.A.
13.	ICICI Bank Ltd	31.	Nutan Nagarik Sahakari Bank Ltd.
14.	Vijaya Bank	32.	UCO Bank
15.	Bank of Maharashtra	33.	Canara Bank
16.	State Bank of India	34.	United Bank of India
17.	Andhra Bank	35.	Syndicate Bank
18.	HSBC Ltd.	36.	South Indian Bank

SEBI may register more SCSB (Self Certified Syndicate Bank) banks as and when they undergo the self certification process. In case your bank is not one of the SCSB as on date/you are not dealing with any of the bank listed above, you are requested to verify with them as to whether they have got subsequently registered as SCSB.

In case you are the client of any of the above banks and you wish to apply, we strongly advise you to consider making an application under the ASBA process. Should you require more details on this, please do write to us.

In case your bank is not an SCSB bank, you may participate in the FPO/IPO through the normal conventional process. Here again, we request you to ensure the following:

1. The application form is filled in all respects and duly signed by the applicants.
2. The demat account details provided therein pertain to the applicants.
3. The bank account details registered with the depository are correct.
4. In case you have not provided the 9 (nine) digit MICR code to the depository participant, please do the same, so that refunds, if any, can be sent through electronic means wherever possible.
5. Please retain the photocopy of the entire application for your future reference.
6. Please ensure that your application is submitted to one of the bidding centers listed in the inner pages of the application booklet.
7. We find that a large number of banks, particularly in the nationalized sector, have brought their branches under total computerization / core bank solution. In the process, account numbers of their clients have under gone changes. Please ensure that the account number registered with your DP is the current new number allotted, by the bank.

This communication is not to be construed as an invitation for applying in the FPO /IPO and the decision to apply shall be taken by you on your own / and / or in consultation with your financial advisor.

For other features of ASBA process, you are advised to go through the circulars hosted on the website of SEBI.