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Investing in IPO through ASBA.
What does ASBA stand for?
ASBA stands for Application Supported by Blocked Amount.
How does ASBA work?
|A.||Under ASBA, you can invest in public issues by authorizing your bank to block an amount equivalent to the application amount in your linked bank account. The application amount is not debited from your account but remains blocked till the completion of allotment process. On allotment, amount required will be debited from your bank account, whereas in case of partial or no allotment, the amount unutilized due to non-allotment is released. |
What are the benefits of investing through ASBA at www.kotaksecurities.com?
|A.|| The benefits of investing through ASBA are as follows: |
What is the difference between ASBA applications for IPO & Non-ASBA applications for IPO?
|A.||While applying in IPOs through ASBA route, the amount is not debited from your bank account till the allotment; the amount supporting the application is only blocked in your bank account. However, in case of IPO applications through Non-ASBA route, the application money is debited from your bank account once the application is successfully submitted . |
How can I invest in an IPO through ASBA application?
|A.|| To invest in an IPO through ASBA, follow the steps mentioned below: |
Can I invest in all Public Issues using ASBA?
No, applications through ASBA can only be placed for Book Built Public issues.
Can I apply for an IPO under ASBA as well as Non ASBA route?
No, you cannot apply in an IPO using both the routes. Both the applications will be rejected on account of the same Permanent Account Number (PAN). You can place only one application per PAN.
Will I get priority in the event of allotment if I invest through ASBA?
No, all investors are treated equally in the event of allotment. There is no such priority given to ASBA applications.
|9.||What is the cut-off time for investing in an IPO using ASBA?|
The cut-off time to invest in an IPO using ASBA & Non-ASBA remains the same.
|10.||Can I place multiple orders under ASBA at different rates?|
Yes, you are allowed to place three orders at different rates.
|11.||Can I withdraw the amount blocked in favor of ASBA application?|
No, the amount blocked in your bank account supporting the ASBA application cannot be withdrawn till the time of allotment.
|12.||Can I revise the bid at which I placed the application order?|
Yes, Revisions/ modifications can be done on the online portal and the final amount payable will be blocked by the Bank subsequently.
Can I withdraw my application placed using ASBA during the issue period?
Yes, you can make cancellations on the online portal till the last day of the issue. Subsequently, you will have to approach RTA for withdrawals.
|14.||What would happen if the issue is withdrawn or fails?|
Under such circumstances, the application money is unblocked in your bank account after receiving communication from the Registrars to the issue.
|15.||Is there any additional documentation required to avail of the ASBA facility?|
No, no additional documentation is required in any form to avail the this facility.
|16.||Are there any terms or conditions that I need to know before investing through ASBA?|
|A.|| Yes, given below are the terms and conditions you need to know for investing through ASBA: |