Who are Self Certified Syndicate Banks (SCSBs) and how do I know if my bank has the facility to apply in an IPO using ASBA payment method?
Banks which are certified by SEBI, allow retail individual investor to apply in IPO’s using ASBA payment method, are known as ‘Self Certified Syndicate Banks (SCSBs)’. SCSB’s has capability to block the IPO Application amount until IPO allotments are done. SCSB guarantee the Issuer Company for the blocked money and make sure that it’s not being used for any other purpose. Bids can be submitted online through internet banking websites or by visiting the branch office of the bank. All branches of the bank may not participate in ASBA process. Visit your local branch to see if it has ASBA facility to apply in IPO’s. Once receiving the IPO Application from an investor, SCSB’s sends the bidding information to BSE/NSE electronically. After allotment, Issue Company or the registrar of the IPO withdraw the required money from the bank account and unlock the remaining amount for investor to use immediately. On August 28, 2008 SEBI approved Corporation Bank, Union Bank of India and HDFC Bank as S
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