Month: February 2018

All about C-ASBA!

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Introduction

ASBA means “Application Supported by Blocked Amount”.

  • ASBA is an application containing an authorization to block theapplication money in the bank account, for subscribing to an issue.
  • If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed.
  • SEBON introduced the ASBA guideline   and implemented fromMagh 1, 2073.
  • According   to   new   regulation   from   SEBON,   ASBA   will   be mandatory for all the public issuance that will be issued after Shrwan 1, 2074.

C-ASBA

An Web Based Centralized Application developed by CDSC that complies with ASBA guideline which aims to provide the Online facility for different stake holders of complete Issuance process.

  1. Mero Share for Client
  2. C-ASBA for Issue Manager
  3. C-ASBA for Banks
  4. Mero Share for  DP

 

Features of C-ASBA

  • A Centralized Web application that will automate IPO issuance process providing the access to all the participants of the market.
  • Provides  a  platform  for  banks  and  issue  manager  to  process and   verify  the  details  of  IPO/FPO  applicant  along  with  their mentioned BOID
  • Provides a platform for investors to apply for IPO/FPO/Rights through the internet under ASBA guideline.
  • Provides the system that will shorten the overall period of IPO processing( from 45+ days to 10- days)
  • Facilitate to integrate the Demat Account of Investor with their Bank Account so that the payment system of the share transaction can be automated in future.

Participant

  • CDSC

Develops a Centralized System and  Provides a platform to connect all of the participants during securities issuance.

  • BANK

Verifies Bank Account Information of the Investors with Demat

Account Information

  1. Takes a standing instruction from the client which states that ” The client agrees that the bank can debit/freeze the amount from/in his BANK Account if the instruction is initiated  for the mentioned BOID(Which is verified by BANK).
  2. Blocks the Funds in the Investors Bank Account according to the information received from the System
  3. Debits the Funds as per the information received from the System
  4. Releases the blocked amount as per the information received from the system
  • Issue Manager
  1. Provides the Issue details to CDSC
  2. Downloads the detail Report of IPO Application
  3. Checks and Verifies for the Duplicate Applications
  4. Finalize the Valid Applications and Process for the Allotment
  5. Conclude the Allotment
  6. Upload the Allotment Detail in the system
  7. Verifies the allotted Amount Debit Confirmation report form Bank
  8. Verifies the  non allotted Amount report from Bank
  • Investor
  1. Provides the bank Account information to be updated in their Demat Account
  2. Fill-up the Declaration Form which states that he allows to Block/Debit his Bank Account as per the Instruction from CDSC/Mero Share
  3. Provides the Demat Account Detail along with Bank Account Details to his Bank
  4. Subscribe for Mero Share Application
  5. Applies for IPO from the Mero Share application.
  • DP
  1. Updates the Bank Account Information of BOs to CDAS application
  2. Provides the Login Information for Mero Share Application to BO

Process

  • Bank Account Information Update in CDAS Application
  1. Investor will provide bank account details to their respective DPs
  2. DP  will  update  bank  account  details    of  the  respective  BOID  holder  in   CDAS application.
  • Client Registration by Bank
  1. CDSC will provide C-ASBA Application login to Banks .
  2. The Bank will Prepare a C-ASBA Registration Form(CRF) which states that the Investor agrees to let the bank to debit or freeze his Bank account if such request was initiated with mentioning the UNIQUE CODE called C-ASBA Registration Number(CRN) that was provided by the bank during Registration.
  3. Investor will fill up CRN with his Demat Account details  and Bank Account details.
  4. Bank will check and verify the Demat Account details that is available in C-ASBA application along with the Bank Account details available in Banking System and the details mentioned in  the CRF.
  5. Once the details is  verified, the Bank will register the Client in C-ASBA Client
  6. Registration module and provides CRN  to the client.
  7. The Client Registration  will  make the client eligible to apply for the Issue under ASBA guideline.
  • Issue open for IPO
  1. Issue Manager will provide Issue details for IPO application to CDSC.
  2. CDSC will add Issue details to C-ASBA application.
  3. C-ASBA application will reveal the issuance details for the concerned users.
  • Apply for IPO using Online application
  1. Investor will get Mero Share login from his own DP.
  2. Investor will submit CRF to his bank and receive CRN.
  3. Investor will get a application portal (MY ASBA) activated in his Mero Share application once the bank registers the client to C-ASBA and provides the CRN .
  4. Investor will apply for the IPO through ASBA portal using his CRN.
  5. Bank will get the application report to his C-ASBA application.
  6. Bank will download the freeze instruction file for all the received application and upload to their CBS system.
  7. Bank will generate and upload Confirmation Report to the system.
  8. Issue Manager will generate the report and process for the allotment.
  • Apply for IPO using Physical application
  1. Bank will provide a Application form for IPO application to their client. (The Form must have one extra field to fill up the CRN number.)
  2. Investor will Submit the Application form mentioning their CRN number to his bank
  3. Bank will enter the BOID of the applicant in C-ASBA application and fill up the applied quantity mentioned in the application form.
  4. Bank will check the CRN number mentioned in the application form at the time of application submission in the system.
  5. Bank will generate the Application Report at the end of the day.
  6. Bank will Block the amount as per the report generated by the system and upload the response file .
  7. Issue Manager will generate the report and process for the allotment.
  8. Issue Manager will upload the allotment report in the system
  9. Bank will download the Allotment report from the system and Debit/Unfieeze the Amount from the applicant Account.

Source: C-ASBA Manual prepared by Mr. Suresh Neupane, Sr. IT Officer, CDSC.

 

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