The market watchdog Sebi on Thursday allowed the State Bank,ICICI Bank and 14 other banks to accept ASBAs (application supported blocked amount) to enable better participation by corporate investors and HINs in IPOs or rights issues. The ASBA facility means that money is not released from the applicant's account till the shares are alloted to him/her while applying for IPOs or rights issue. Besides these two banks,other lenders include Axis Bank,State Bank of Hyderabad,Corporation Bank,State Bank of Travancore,IDBI Bank,State Bank of Bikaner and Jaipur,Yes Bank,Punjab National Bank,Deutsche Bank,Union Bank of India,HDFC Bank,Bank of Baroda,Vijaya Bank and Bank of Maharashtra. These banks have been authorised to accept ASBAs in all issues from January 1,Sebi said in a release on Thursday. Earlier this month,Sebi extended the ASBA facility to corporate investors and high networth individuals (HNIs),which was earlier available only to retail investors. However,qualified institutional buyers (QIBs) are not eligible to apply for public or rights issues using the ASBA facility. The regulator further said the names of other banks will be added as and when requisite certificate is submitted by them. Since the introduction of the ASBA in 2008,it has been implemented in more than 20 issues and has benefited the investors,issuers and the markets.
