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27 BFIs Enter ASBA System

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27 BFIs Enter ASBA System
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January 11: Securities Board of Nepal (SEBON) has approved 27 banks and financial institutions (BFIs) to implement ASBA (Application Supported by Blocked Amount) system. The board has also requested other BFIs meeting the criteria for ASBA implementation to submit applications. 


Under the ASBA system, general investors can apply for initial public offering (IPO) directly through their bank accounts and an IPO applicant's account doesn't get debited until shares are allotted to them. Moreover, ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. 


The BFIs that were granted approval from SEBON for ASBA includes 18 commercial banks and 9 development banks. SEBON is planning to implement ASBA through all the BFIs so that to provide easy services to the customers. 


The board informed of receiving additional few application from the BFIs and few in the process. "After thorough  study of the applications, more BFIs will be given the approval in coming days," said Neeraj Giri, Spokesperson of the board.  


The ASBA system is being implemented in order to make the securities issuance faster and transparent providing ease to general investors while trading securities. According to the board, the system will not be made mandatory but optional in its initial phase.  

 

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