Application Supported by Blocked Amount (ASBA) facility in public/ rights issue
Summary
SEBI issued a circular on September 13, 2012, directing Self Certified Syndicate Banks (SCSBs) to adhere to strict fund demarcation rules for ASBA applications. The directive prohibits blocking application amounts against credit limits or overdraft facilities and mandates the use of funded deposit accounts. SCSBs making applications on their own behalf are required to maintain separate accounts solely for public issue applications.
Text
SCSBs shall block the application amount only against/in a funded deposit account and ensure that clear demarcated funds are available for ASBA applications.
SCSBs should have a separate account in own name with any of the SEBI registered SCSBs... Such account shall be used solely for the purpose of making application in public issues and clear demarcated funds should be available in such account for ASBA applications.
Source: SecMarx — Application Supported by Blocked Amount (ASBA) facility in public/ rights issue. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.