Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 115]
Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 115]
Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 116]

5 Commercial Banks and 7 National Level Devt Banks Apply to carry out ASBA

  1 min 31 sec to read
5 Commercial Banks and 7 National Level Devt Banks Apply to carry out ASBA
Notice (8): Undefined index: caption [APP/View/Articles/view.ctp, line 241]

December 14: Five 'A' listed commercial banks and Seven 'B' listed national level development banks have applied to carry out ASBA (Application Supported by Blocked Amount) system that is being implemented by Securities Board of Nepal (SEBON) from January 14. Under the 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 banks applied to SEBON to initiate the system through them. Upon the implementation of the system, the board believes that the investors will get relief from standing long-queues, waiting above 70 days to get security certificate and holding of the money for long time.

"SEBON is implementing the new technology to make the security market extra managed and effective," said Dr Rewat Bahadur Karki, Chairman of SEBON. "After the implementation of ASBA, all the banks of India and Bangladesh executed the system in eight and five years respective. Looking at the experiences of the neighbouring countries, the system is being implemented in Nepal as well," he clarified. He added "The ASBA system is a suitable process to control black money in the share market."

By December 12, five 'A' listed commercial banks applying for providing customers ASBA facility are Sunrise, Century Commercial, Citizens Internation, Sanima and Laxmi Bank. Similarly, the 'B' level national level development banks including Infrastructure Development, Kailash Bikash, Yeti Development, Dev Bikash, Tourism Development, Ace Development and Mahalaxmi Bikash Bank have applied for providing ASBA facility to the customer.

 

Deprecated (16384): Using key `action` is deprecated, use `url` directly instead. [CORE/Cake/View/Helper/FormHelper.php, line 383]
No comments yet. Be the first one to comment.