The Securities and Exchange Board of India (SEBI) introduced the Application Supported by Blocked Amount (ASBA) scheme with effect from 1st September 2008.

It enables investors in Public Issues to allot an amount for the application, while still retaining that amount in the SB account. It is an approved way of earmarking the amount, with a well laid out set of processes to take care of payment / refund depending on whether the application is successful or not, and to ensure that only the amount required for the allotted shares is debited.

The investor no longer needs to lose or get less interest on amounts paid with share applications but can continue to earn interest on his balances with his bank until the actual amount is debited.

Union Bank was one of the few Banks which were able to make available the ASBA facility to its customers right from the day of its introduction, due to the technical capabilities of the Bank and looking to the inherent advantages of the scheme for the customer.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

• Applications Supported by Blocked Amount (ASBA) is an additional Payment Mode introduced by India's capital market regulator SEBI, with a view to make the existing public issue process more efficient. The ultimate aim is to reduce the time period between the Issue closure date and listing of shares. It also eliminates delay in receipt of refund of oversubscription amounts.
• It is available in all public issues made through the Book Building route {both Initial Public Offerings (IPOs) & Further Public Offerings (FPOs)} as well as Rights Issues. It co-exists with the existing process, wherein cheque is used as a mode of payment.
• It was initially introduced by SEBI w.e.f. 01st September 2008. At present, all categories of investors, including Qualified Institutional Buyers (QIBs) are eligible to apply through ASBA mode.
• Only those Banks that has a valid registration with SEBI as a Bankers to an Issue and which has submitted a certificate to SEBI as per the given format will be treated as a Self Certified Syndicate Bank (SCSBs). Only SCSBs can extend ASBA facility to its customers. Union Bank of India is one of the few Banks to extend the said facility to its customers right from the first day the process came into existence.
• ASBA means an application for subscribing to a public or rights issue, along with an authorization to the Bank (SCSB) to block the application money in a Bank account.
  • An ASBA investor, who maintains a Savings or a Current account with any branch of the Bank, can submit a physical ASBA to the designated branches or electronically through internet banking facility, Mobile App and UPI, during the issue open period.
  • The Demat account of the applicant can be with any of the Depository Participant.
  • In an ASBA, a maximum of three bids are permitted within the price band and in multiples of lot size specified by the issuer. The amount equivalent to the highest bid will be blocked.
  • The Bank in turn, will block the application money in the Saving Bank or Current account specified in the ASBA application, on the basis of an authorization to this effect given by the account holder in the ASBA application form.
  • Adequate clear balance should be available in the account that is proposed to be blocked.
  • The bids upto Rs 2.00 lac can be revised (upward or downwards), withdrawn or cancelled during the issue open period.
  • The application money will remain blocked in the bank account till finalization of the basis of allotment of the issue or till withdrawal / failure of the issue or till withdrawal / rejection of the application, as the case may be.
  • The Bank shall, within the issue open period, upload the application data in the electronic bidding system of the Stock Exchanges.
  • In case of withdrawal / failure of the issue, the Bank on receipt of information from the Registrar to the Issue shall unblock the amount.
  • Once the basis of allotment is finalized, the Registrar to the issue shall send an appropriate request to the Controlling Branch for unblocking the relevant bank account and for transferring the requisite amount to the issuer's account designated for this purpose.
  • The allotted shares will be credited to the Demat account of the applicant specified in ASBA.

ASBA is a Simple, Safe and Smart way of applying in an eligible issue.

Union Bank has provided the facility for applying ONLINE under ASBA, through Internet Banking. Please click on the link below for a guide to Online ASBA

Click Here

• Investor who has internet banking facility (INB) on their deposit account, with transaction rights can bid on “https://www.unionbankonline.bank.in” under ASBA facility. For such investors, there is no need to submit physical application form to any branch. Internet Banking users should log on to https://www.unionbankonline.bank.in/ and go to ASBA tab and can apply for IPO/Rights issue.
• Any Union Bank customer, who has a Savings or Current Account, can register for Internet Banking facility.
• All Union Bank customers, irrespective of the branch where they maintain account, can apply for ASBA through Internet Banking.
• A hold will be marked on the total amount, at the highest price bid by the applicant.
• Application money shall remain blocked up to the finalisation on the basis of allotment.
• Account will be debited after the allotment of shares.
• If any information furnished by the applicant is incorrect, the Bid is liable to be rejected and the Bank shall not be liable for losses if any.