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+ Expand AllInvesting in NCDs through ASBA

  • QWhat does ASBA stand for?
    ASBA stands for Application Supported by Blocked Amount.
  • QHow does ASBA work?
    Under ASBA, customers can invest in Non-Convertible Debentures (NCDs) by authorizing the bank to block an amount equivalent to the application amount in the linked bank account. The application amount is not debited from the account but remains blocked till the completion of allotment process. On allotment, amount required will be debited from the bank account whereas in case of partial or no allotment, the amount unutilized due to non-allotment is released.
  • QWhat are the benefits of investing through ASBA at www.kotaksecurities.com?

    The benefits of investing through ASBA are as follows:

    • No paper work
    • Invest at your convenience through www.kotaksecurities.com
    • Continue earning interest on the application amount, since the amount is only blocked & not debited from your bank account
    • The investor does not have to bother about refunds, as only an amount proportionate to the securities allotted is taken from the bank account on allotment after the basis of allotment is finalised. The unutilized amount is automatically released.
  • QWhat is the difference between ASBA applications for NCDs& Non-ASBA applications for NCDs?
    While applying in NCDs through ASBA route, the amount is not debited from your bank account till the allotment; amount supporting the application is only blocked in your bank account. However, in case of NCDs applications through Non-ASBA route, the application money is debited from your bank account once the application is successfully submitted.
  • QHow can I invest in an NCD online through ASBA application?

    To invest in an NCD online through ASBA, follow the steps mentioned below:

    • Login to www.kotaksecurities.com with your User ID & password
    • Go to IPO action section & click on "Apply Debentures"
    • On Apply Debenture page, click on "ASBA" radio button. A list of disclaimers will be available on screen. Read them carefully & click on "I Accept"
    • Clicking on "I Accept" will lead you to "Place Order" page which will prompt you to fill in necessary details to place an NCD order
    • After filling in details, click on "Place Order" tab which will lead you to a new pageconfirming your details. Enter your Date of Birth & click on "Submit" tab
    • When you click on "Submit" tab, a pop-up message will appear on screen "Kindly ensure sufficient funds in your Kotak Mahindra Bank Account". Click on "OK" to complete placing of NCD order using ASBA
  • QIs ASBA facility for investments in NCDs online available to all Kotak Securities customers?
    No, the ASBA facility for investments in NCDs online is available only to the customers having Trinity account with Kotak Securities having bank mapped as Kotak Mahindra Bank
  • QIf I make an investment in NCDs using ASBA, do I need to transfer money from my bank account to IPO ledger held in Kotak Securities trading account?
    No, in case of investments in NCDs using ASBA, the balance equivalent to the application should be held in linked Kotak Mahindra Bank account & should not be transferred to IPO ledger. However, if you make an investment in NCDs using Non-ASBA facility, you will be required to transfer the amount equivalent to application from your savings bank account to IPO ledger for successful registration of transaction.
  • QWhat will be the interest rate applicable to the application amount in case of investments in NCDs through ASBA & Non-ASBA?
    In case of investments in NCDs using ASBA, the savings bank account interest rates will be applicable to the application amount. However, the interest rate applicable to application amount in case of Non-ASBA application shall vary from issue to issue. For details on interest rates applicable to Non-ASBA applications, please refer to offer document before investing.
  • QCan I apply in an NCD under ASBA as well as Non ASBA route?
    No, you cannot apply in an NCD using both the routes. Both the application will be rejected on account of same Permanent Account Number (PAN). You can place only one application per PAN.
  • QWill 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
  • QWhat is the cut-off time for investing in an NCD using ASBA?
    The cut-off time to invest in an NCD using ASBA & Non-ASBA remains the same.
  • QCan I place multiple orders under ASBA at different rates?
    Yes, you are allowed to place three orders at different rates.
  • QCan 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.
  • QCan I revise/modify/cancel the bid at which I placed the application order?
    No, Revisions/ modifications/cancellationsof bids is currently not allowed for the orders placed in NCDs using ASBA through Kotak Securities
  • QWhat 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.
  • QIs there an additional documentation required to avail ASBA facility?
    No, no additional documentation is required in any form to avail the this facility
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