Share market in the context of Nepal

1. Application Supported by Blocked Account

2. Introduction
 ASBA - Applications Supported by Blocked Amount
 A process implemented by the Nepal's Stock Market
Regulator SEBON (Securities Board of Nepal) for applying
to IPO (Initial Public Offering) or the FPO (Further Public
Offerings) as well as Rights Issues.
 In ASBA, an applicant's application money is block in their
bank account while subscribing to the issues until shares are
allotted to them.

3.  The money is held by the issue manager until shares are
allotted to the applicants.
 SEBON has introduce ASBA system in Magh 1st 2073.
 ASBA System to was implemented from Forward
Community Microfinance doing its IPO under the system.
 At First , 30 organization were given liscense of ASBA
System but not mandatory to use by applicants.
 From Shrawan 2074, SEBON makes ASBA System
Mandatory

4. Objective
 To eliminate hassles that investors face while filing
applications for share subscription as well as getting their
money back following the allotment.
 The decision to implement the ASBA is a part of the
Sebon's initiative to modernize Nepal's capital and
secondary market.
 Sebon officials contend that the implementation of the
ASBA will simplify and shorten the IPO and stocks issuance
process.

5.  To reduce the time period between the issue clouser date
and listing of shares.

6. Benefits
 It will reduce the time taken for processing IPO’s and
clearing or returning amounts collected during IPOs.
 The transparency of share allotment will also be enhanced.
 Customer availing interest rate in their eisting account will
benefitted by getting same interest until the final allotments
of shares.
 This will address the artificial liquidity crisis due to IPO’s or
FPO’s fund.

7. Eligibility of Customer & Account
 Only Normal Current Account and Savings Account are
eligible for ASBA.
 Customers should have completed KYC and given necessary
details provided to the bank.
 Customer account shall not be in Dormant/WAUN status.
 Customer account is not in blocked condition by bank
compliance or any regulatory/ law enforcing agencies.
 The account should be in positive balance.
 Loan account or OD type of accounts are not eligible.

8. Requirement
 PAN Number
 DP Id & Client Id (DEMAT )
 Bid quantity
 Bank account number
 Signature

9. Process
 It takes at least 70 days now for a company to complete its
IPO process, the allotment will be completed within 30 days
once the ASBA comes into implementation.
 Once the allotment is completed by Issue Manager ,the issue
manager forwards the details of allotment to the bank.
 Based on allotment, banks unblock the account of each
customer.
 After the completion of process the company goes to
NEPSE for the listing of their shares .
 Issue Manager self auto credit the shares of customer to
their demat acount.

10. Software
 Pumori Module for ASBA has been developed and
deployed

11. Thank You!!