ASBA Facility - Apply online for IPO through ASBA - Kotak Mahindra Bank

ASBA Facility - Apply online for IPO through ASBA - Kotak Mahindra Bank

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Kotak ASBA Facility - Kotak Bank

ASBA

Enjoy continued TD/Savings Account returns on Bid (blocked) amount

No loss of interest, since the application amount is not debited to the Savings Account on application

Since the amount is available in the account, it is considered for calculation of the Average Quarterly Balance (AQB)

cheque

No cheque / demand draft required to pay for the application money

Other Features

Easy to apply in Initial and Follow-on Public Offers (IPO and FPO), Rights Issues, and Debt Issues over Phone/Net Banking
The amount for which no shares have been allotted is available immediately on completion of allotment process. There is no need to wait for the amount to be refunded by the company and be credited to the account.
Option to revise/withdraw the bid before the end of the issue in the prescribed format at the designated branch of Kotak Mahindra Bank
ASBA facility can also be availed by Qualified Institutional Buyers, High Net-worth Individuals, Corporate, Institutional Investors, Promoters etc.*, along with Retail Investors
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 in investor’s account
Click here to view the steps for ASBA registrations on Net Banking

Disclaimer

*Please refer Eligibility section of the product for further details.

Frequently Asked Questions

What is ASBA?

ASBA is “Application Supported by Blocked Amount”. It is an application that can be used by an investor subscribing in IPO/FPO/Rights shares and acts as an authorisation to block the application money in the bank account.

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What are the benefits of applying through ASBA?

Investors applying using the ASBA form reap the following benefits:

No loss of interest, since the application amount is not debited to the savings account on application.
The amount for which no shares have been allotted is available immediately on completion of allotment process. There is no need to wait for the amount to be refunded by the company and be credited to the account.
Since the amount is available in the account, it is considered for calculation of the Average Quarterly Balance (AQB).
Multiple bidding facility is available to the Customer.
Customer can revise/withdraw the bid before the end of the Issue in the prescribed format with the Bank.

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What happens when I apply for an IPO through ASBA?

When applied using the ASBA form, the investors would not have to pay the money during IPO application. The amount would be retained in the investor's bank account and blocked for the IPO application.

Only if shares are allotted to the investor, the amount would be paid to the company towards the IPO allotment. If there is no allotment, the amount would be simply released, and the investor would be able to utilise it immediately.

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Can I open ASBA with any bank?

ASBA can be opened with a Self Certified Syndicate Bank (SCSB) as per SEBI guidelines. Not all banks are enlisted as SCSB. Kotak Mahindra Bank is an SCSB.

Also, the ASBA IPO Application form can be submitted at the bank branch, which is designated for the purpose. Both these factors should be considered while opening ASBA.

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What is the application process? Where do I submit the IPO application?

Please refer to below information.

Complete the Beneficiary registration process over net banking or by submitting a registration form at the branch
Complete the Beneficiary Activation process (not required in case of physical form submitted at branch)
Apply for Initial and Follow-on Public Offers (IPO and FPO), Rights Issues, and Debt Issues over Net Banking / Phone Banking
You can also apply for the Initial and Follow-on Public Offers (IPO and FPO), Rights Issues, and Debt Issues by submitting an ASBA application form at the designated branch of Kotak Mahindra Bank. Please note that a separate ASBA application form is available for every public issue. Registration is mandatory if you wish to avail the facility over net banking or phone banking.

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