ASBA is a hassle free solution for investment in Public Issues and Rights Issues. A number of banks already introduced this interface and now Syndicate Bank introduced this facility for investors called Application Supported by Blocked Amount (Synd ASBA) as per the SEBI guidelines.
Unlike the current system of applying in IPOs using cheques, where your funds are blocked unproductively as application money till the finalization of the allotment/bid, under ASBA your funds will continue to earn interest during the application processing period as application money remains blocked in account till allotment.
Customer account will be debited only on successful allotment and to the extent of allotment thus obviating the hassles of waiting for refund orders. This facility is also available for rights issue and new fund offers (NFO) of mutual funds. At present SyndASBA facility is available in 49 branches.
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