andhrabank.in ASBA Applications Supported by Blocked Amount : Andhra Bank

Organization : Andhra Bank
Service Name : ASBA Applications Supported by Blocked Amount
Applicable State/UT: All India

ASBA : http://www.andhrabank.in/English/asba.aspx
Website : http://www.andhrabank.in/English/Home.aspx

Applications Supported by Blocked Amount :

** Applications Supported by Blocked Amount (ASBA) means an application for subscription to an issue containing an authorization to block the application money in a Bank account.

Related : Andhra Bank National Electronic Funds Transfer : www.statusin.in/20726.html

** It is an additional mode of payment for investment in shares.
** Without moving the funds out of your account, the amount will now be simply blocked.
** This means as long as the IPO shares are not allotted, the funds stay in your account and you will also not lose interest in your savings bank account.
** The amount equivalent to allotted shares will be debited from your account and the balance, if any, will be unblocked in your account.
** ASBA (Applications supported by Blocked Amount) – No need to issue cheques by investors while subscribing to IPO.
** Just write the Bank Account Number and sign in the application form to authorize your bank to make payment in case of allotment.
** No worries for refund as the money remains in investor’s account.

What is Application supported by Blocked Amount (ASBA)?
Applications Supported by Blocked Amount (ASBA) :
** 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 amount is less than or equal to Rs. 1,00,000 for investor category Individual, Employee, Share holders.
** One account can be blocked for maximum five applications in an IPO.
** Revision ,modification and cancellation of bids for retail individual investors are permitted till the issue closure date and time.
means an application for subscription to an issue containing an authorization to block the application money in a Bank account.
It is an additional mode of payment for investment in shares.
Without moving the funds out of your account, the amount will now be simply blocked.
This means as long as the IPO shares are not allotted, the funds stay in your account and you will also not lose interest in your savings bank account.
The amount equivalent to allotted shares will be debited from your account and the balance, if any, will be unblocked in your account.

Is the ASBA facility available to all types of IPO’s ?
Application under this facility can be placed for Public Issues under Book Building for existing shareholders or as defined by SEBI from time to time

Is any additional documentation required for availing the IPO facility?
No, further physical documentation is required to avail this facility.

I do not have bank account with Andhra Bank. Can I still apply through your branches in IPO?
No, further physical documentation is required to avail this facility.

What is the process to bid under Andhra Bank Internet Banking?
** Login to your Internet Banking account. The account can be held with any Andhra Bank branch across the country.
** Click on the link named “IPO Request” on the Home Page.
** Investor can see the IPOs available during that particular period under IPO Details sub option.
** Investor can bid through BID Online option available.
** Select one of the IPOs you want to apply for, select Bank account number having balance, PAN Number, Demat account particulars etc., and mention the number of shares you want to purchase and the bidding price. The fund will be blocked on the highest value of the three bids.
** You would then be required to provide your user id and transaction password to submit the bid.
** The bid will be accepted and a Unique reference number shall be provided for any further status enquiry on the application which can be noted

Are there any charges for IPO through ASBA?
As of now this value added service is provided free of cost.

What is the time limit for bidding IPO (ASBA) facility?
Bidding time will be of 3 hrs before closing time of closing date.

When the bank will need money in my account to lock for IPO payment option?
Bank will need the money in investor’s account at the time of placing the bid for IPO shares payment option. SEBI has clearly instructed that banks will not accept IPO application before blocking the bidding amount (for ASBA process). The amount will remain blocked until registrar / stock exchange request bank to release the fund either because the investor didn’t receive the allotment, IPO application got rejected or investor withdraws the IPO application.

Can I cancel or withdraw or Modify the IPO Application (or bid) submitted ?
Yes, you can place a withdrawal request anytime during the bidding period. Any request for bid withdrawal should be made during the banking hours and on or before 3 hours of the issue closure date and will be subject to acceptance of Stock Exchange after which the application amount in your account will be unblocked. In case of upward revision additional fund will be blocked and in case of downward revision no revision of fund blocked will take place.

Is it possible to bid in an IPO under ASBA as well as under Non-ASBA route?
No. Only one application per IPO is permissible either through ASBA or non-ASBA route. Multiple applications are liable to be rejected based on the common PAN’s.

Is it possible to withdraw the amount blocked for IPO application ?
No. The blocked amount cannot be withdrawn until the issue process is completed. However the same will be lying in your operative bank account till the allotment and you will earn interest as per account terms applicable.