SEBON Approves 11 BFIs for ASBA Implementation

December 25: Securities Board of Nepal (SEBON) has approved 11 banks and financial institutions (BFIs) to implement ASBA (Application Supported by Blocked Amount) system. . 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. Additional 6 BFIs have applied to SEBON for carrying out the system. As per the board, approvals will be given soon after a detail study of the applications.

The board has given approval to Century Commercial, Sunrise, Kailash Bikash, Ace Development, Citizens International, Sanima, Laxmi Bank, Sanima Bank, Siddhartha  Bank, NIC Asia Bank, NB Bank and Kumari Bank for the implementation of ASBA. The ASBA system is being implemented in order to make the securities issuance faster and transparent providing ease to general investors while trading securities.