It has been a very long time since i have applied in an IPO . now i understand only ASBA or UPI is allowed . no cheque application .
PLEASE GUIDE how to apply in ASBA or UPI . my bankers are a multi state cooperative bank ( neft/rtgs
is there ) and my broker is non corporate proprietor member of stock exchange .
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One may apply through a SCSB Branch using a physical application form or they may apply using their bank’s netbanking portal. These applications are made using ASBA.
ASBA means “Applications Supported by Blocked Amount”. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue.
UPI supported applications also work like ASBA. Here your broker is sending your application bids to the exchange. The exchange then sends this to the Sponsor Bank (Banker to the Issuer company). The sponsor bank then initiates a request on the UPI ID you would have provided to your Broker. Once you accept the mandate request, like ASBA, money is blocked in your account. On allotment, money is debited from your account. If you are not alloted the shares, the blocked amount is released.
Currently, at the Sponsor Banks’ end as well as at the Destination Banks’ end, the failure rate of transactions has been significant. In our experience, only half of the applications are going through seamlessly. The workaround is to delete your application and reapply. But, sometimes failures could persist since they occur on the banking systems.
You can find the list of SCSBs here to check if your Bank is available:
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=35
Even if your broker is a non-corporate proprietor member, he can still apply on your behalf through the UPI ASBA route.
Hope this helps.
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Bank account or the trading account?
Use your common sense and you’ll figure out the answer!