ASBA? how effective is it?

[Logik]

I m not regular IPO bidder. I have only applied to 3-4 IPOs so far in last 4 years. the main reason: u never get shares & (refund) money too. It really sucks. My father lost some amount of money in 2005. but now Ibulls is offering online IPO which has less flaws.

But anyways, i was reading things about ASBA on net.

i came across this article
http://business.rediff.com/report/2010/jul/08/sebi-to-fine-tune-asba.htm

give article a try.......nice & short article.

It clearly saya ASBA is not so popular so far. I am wondering y not?

commonsense says its the best thing that can happen to investor. pay money only after u get delivery. isn't it the traditional way of doing business
& daily buying?

I was at local religare office this morning. I asked the BM abt the this whole process. I never mentioned its name to him. he muted for a min & then said the process (i was talking abt) was once existed. But due to lack of popularity its as good as dead. He never told me name of process . I bet he don't know it.

I think one of the reasons for ASBA failure is brokers. These ppl never try to do anything is favor of customers. SEBI on one hand is very lazy institute. They only come with effective solution after handsome damage to common investor is done.

anyways i got some qs.
1. Is ASBA is offered by broker or ur bank?
2. Is it possible to adopt ASBA while applying online?
3. Anyone tried this ASBA ever? If yes, can u give details of how to apply using ASBA, in brief?


comments are most welcomed.

Logik

 

[asnavale]

I m not regular IPO bidder. I have only applied to 3-4 IPOs so far in last 4 years. the main reason: u never get shares & (refund) money too. It really sucks. My father lost some amount of money in 2005. but now Ibulls is offering online IPO which has less flaws.

But anyways, i was reading things about ASBA on net.

i came across this article
http://business.rediff.com/report/2010/jul/08/sebi-to-fine-tune-asba.htm

give article a try.......nice & short article.

It clearly saya ASBA is not so popular so far. I am wondering y not?

commonsense says its the best thing that can happen to investor. pay money only after u get delivery. isn't it the traditional way of doing business
& daily buying?

I was at local religare office this morning. I asked the BM abt the this whole process. I never mentioned its name to him. he muted for a min & then said the process (i was talking abt) was once existed. But due to lack of popularity its as good as dead. He never told me name of process . I bet i don't know it.

I think one of the reasons for ASBA failure is brokers. These ppl never try to do anything is favor of customers. SEBI on one hand is very lazy institute. They only come with effective solution after handsome damage to common investor is done.

anyways i got some qs.
1. Is ASBA is offered by broker or ur bank?
2. Is it possible to adopt ASBA while applying online?
3. Anyone tried this ASBA ever? If yes, can u give details of how to apply using ASBA, in brief?


comments are most welcomed.

Logik

Hi Logik,

1. ASBA is offered by Bank.
2. Yes, ASBA is available while applying online.
3. Yes, I did. I applied for a recent IPO and the money was in my account till allotment. In fact, I got the allotment message from NSDL in the morning at 8:30 and the money was deducted in the evening at 5:45. I had applied online through ICICI Bank where I have both trading and SB A/c.

-Anant

 

[dewashish]

I have a Demat Account in RelianceMoney ,But I want to apply through ASBA by my SBI account.Is it possible ???or I need to have a Demat Account in SBI for it ..????

 

[vijushimpi]

I was applied through SBI for EIL & got alloted but after it I applied for more than 4 IPOs never got. I think it is not necessary than you must have demat account their only , what you need is may be transactions rights of SBI.

 

[VJAY]

I m not regular IPO bidder. I have only applied to 3-4 IPOs so far in last 4 years. the main reason: u never get shares & (refund) money too. It really sucks. My father lost some amount of money in 2005. but now Ibulls is offering online IPO which has less flaws.

But anyways, i was reading things about ASBA on net.

i came across this article
http://business.rediff.com/report/2010/jul/08/sebi-to-fine-tune-asba.htm

give article a try.......nice & short article.

It clearly saya ASBA is not so popular so far. I am wondering y not?

commonsense says its the best thing that can happen to investor. pay money only after u get delivery. isn't it the traditional way of doing business
& daily buying?

I was at local religare office this morning. I asked the BM abt the this whole process. I never mentioned its name to him. he muted for a min & then said the process (i was talking abt) was once existed. But due to lack of popularity its as good as dead. He never told me name of process . I bet i don't know it.

I think one of the reasons for ASBA failure is brokers. These ppl never try to do anything is favor of customers. SEBI on one hand is very lazy institute. They only come with effective solution after handsome damage to common investor is done.

anyways i got some qs.
1. Is ASBA is offered by broker or ur bank?
2. Is it possible to adopt ASBA while applying online?
3. Anyone tried this ASBA ever? If yes, can u give details of how to apply using ASBA, in brief?


comments are most welcomed.

Logik

Dear Logik,
Yes ASBA offered by bank..am applyed for coalindia ipo today itself through my bank FEDERAL...if your bank giving ASBA facility then you can do it no need of brokers help...need only your DP /BO no& pan no....

 

[Logik]

@Anant & VJAY

guys i've deamat accnt with indiabulls & bank accnt with ICICI. most of the time i use this bank accnt for moving money in & out of my trading accnt.

how can u say i don't need brokers help? i mean the online bidding is feature offered by broker & not by bank.

so in my case i think indiabulls needs to offer ASBA. off course this is done by indiabulls by making agreement with Banks.

correct me if i am wrong

 

[p_rajivadekar]

NSE IPO section has some ASBA info. Check it out.
1. Is ASBA is offered by broker or ur bank?
Some banks - not all of them - offer ASBA. Check with your bank or download this list of banks which offer ASBA - scsb_list.zip provided by NSE.

2. Is it possible to adopt ASBA while applying online?
yes.

3. Anyone tried this ASBA ever? If yes, can u give details of how to apply using ASBA, in brief?
ASBA can be used by both Retail and HNI. If ICICIDirect is broker and ICICI is bank: It's really simple. Just make sure you click on the ASBA check box. Tick either cut-off or provide the 3 bids just like in the physical form. PAN, Name, Address, DP-id, Client-id etc are all auto-filled. Click submit and click confirm. You are done. Nothing else needs to be done. ICICIDirect has a 3pm deadline on the last day.

If and when allotment is done money is taken from account ONLY for the allotted shares.

If SBI is bank and broker is anyone (RelianceMoney, Sharekhan etc): it's also simple. PAN, Name (same as on PAN card), DP-id, Client-id etc need to filled in the first time. DP-id, Client-id will be in your welcome kit or call your broker. If you save this data as a favourite it will be available for later IPO's. Rest of the process is the same as above. SBI has a 2pm deadline on the last day but better to do it earlier to avoid last minute errors, questions, server problems etc. No need to have a Demat Account with SBI.

I have used both SBI and ICICIDirect. No need to think about ASBA at all...It's the best way to do.

Yes I do agree . I have been using this facility with Axis bank. Its working fine. We save on cost , time and also its safe. Money earns interest even if we have applied as it is blocked in our account. its really nice

 

[Uninitiated]

I found ASBA very effective in the recent Coal India IPO. My account is with HDFC securities which is linked to my HDFC Demat account. The money was debited from my account only upon allotment.

 

[pranav_dh]

I have also found ASBA to be very effective. I have a saving a/c with HDFC & a demat a/c with Sharekhan. I tried ASBA for Coal India IPO.

Money was debited only on allotment & to the extent of allotment.

I also got a message from NSDL to confirm allotment

Two Thumbs up to ASBA!!

 

[a2744010]

Let me make very simple for those who have doubt.

There are 2 ways to use ASBA.

1) you have same demat provider which your bank is. Say SBI/ICICI/Axis/IDBI etc.

2) if you have bank a/c in one of the ASBA banks and demat with some private broker say sharekhan/religare/indiabulls/angel/rkg/ventura, you have to EITHER fill online form and submit print-out in specific branch of your bank which may be some other than your a/c is OR download an ASBA form, fill it and deposit it in same branch of "Self Certified Syndicate Bank".

To know which branch in your city is designated to collect ASBA printouts/downloaded forms, http://www.bseindia.com/bookbuilding/scsb.asp click on your bank and check your city's branch.