If you are applying for an Initial Public Offering (IPO), you may already be aware of the C-ASBA charge that is debited from your bank account. This ASBA or C-ASBA charge is not regulated and hence varies between banks. It is not the same in all banks; just a few charge no CASBA fee, many charge Rs. 10 to Rs. 20, and others charge up to Rs. 100 for every application. Because it is payable while applying for an IPO, many Nepalese refer to the ASBA/CASBA charge as the IPO charge.
In this article, we will learn about the ASBA/CASBA fees charged by several commercial banks in Nepal. And do you know why the bank charges the CASBA fee when you apply for an IPO?
What is ASBA?
ASBA stands for Application Supported by Blocked Amount. When applying for the purchase of publicly traded shares, ASBA withholds a sum equivalent to the value of the securities applied from the investor’s bank account.
This implies that the sum invested is held in the investors’ bank account until the securities (shares/debentures) are issued. Following allotment, the allotted amount is withdrawn from his/her respective bank account, and any remaining blocked funds are released.
What is C-ASBA?
CDS & Clearing created integrated software C-ASBA to make the ASBA system more structured, accessible, and efficient. Previously, ASBA member banks and financial organizations may apply using their own software. Since Falgun 11, 2074, the C-ASBA system has been in operation.
C-ASBA offers a consolidated system by connecting all banks and financial organizations that provide ASBA-related services and the beneficiary account (Demat account). This enables the verification of the investors’ bank account information prior to entering the investors’ applications.
ASBA/ C-ASBA Charges of Commercial Banks in Nepal?
Currently, many banks in Nepal that offer ASBA services can levy ASBA fees of up to Rs. 5 per application. But in 2022, most of the commercial banks in Nepal have increased their charges from Rs. 5 to up to 100 for each application for ASBA. There are also some commercial banks that do not take ASBA fees.
|S.N.||Bank Name||Symbol||ASBA Charges |
|1.||Agriculture Development Bank Ltd.||ADBL||10|
|2.||Bank of Kathmandu Ltd.||BOKL||10|
|3.||Century Commercial Bank Ltd.||CCBL||25|
|4.||Citizen Bank International Ltd.||CZBIL||20|
|5.||Civil Bank Ltd.||CBL||20|
|6.||Everest Bank Ltd.||EBL||20|
|7.||Global IME Bank Ltd.||GBIME||15|
|8.||Himalayan Bank Ltd.||HBL||20|
|9.||Kumari Bank Ltd.||KBL||Free|
|10.||Laxmi Bank Ltd.||LBL||25|
|11.||Machhapuchhre Bank Ltd.||MBL||10|
|12.||Mega Bank Nepal Ltd.||MEGA||25|
|13.||Nabil Bank Ltd.||NABIL||Free|
|14.||Nepal Bank Ltd.||NBL||Free|
|15.||Nepal Credit and Commerce Bank Ltd.||NCCB||10|
|16.||Nepal Investment Bank Ltd.||NIB||20|
|17.||Nepal SBI Bank Ltd.||SBI||25|
|18.||NIC Asia Bank Ltd.||NICA||Free|
|19.||NMB Bank Ltd.||NMB||20|
|20.||Prabhu Bank Ltd.||PRVU||10|
|21.||Prime Commercial Bank Ltd.||PCBL||20|
|22.||Rastriya Banijya Bank Ltd.||RBB||Free|
|23.||Sanima Bank Ltd.||SANIMA||Free|
|24.||Siddhartha Bank Ltd.||SBL||Free|
|25.||Standard Chartered Bank Nepal Ltd.||SCB||100|
|26.||Sunrise Bank Ltd.||SRBL||10|
Many banks that formerly provided free C-ASBA services have begun to demand a fee for this service. The reason for this is that numerous firms are currently launching initial public offerings. Similarly, the number of investors applying for IPOs has skyrocketed. This enables banks and financial organizations to generate simple money through the C-ASBA service.
A bank that can gather 100,000 applications may now earn NPR. 5 lakhs for every IPO from the service that was previously provided for free. As a result, we might witness a change in IPO charges in Nepal.
ASBA/ C-ASBA Charges of Development Banks in Nepal?
|S.N.||Bank Name||Symbol||ASBA Charges|
|1.||Garima Bikas Bank||GBBL||10|
|2.||Kamana Sewa Bikas Bank||KSBBL||20|
|3.||Lumbini Bikas Bank||LBBL||10|
|4.||Mahalaxmi Bikas Bank||MLBL||10|
|5.||Muktinath Bikas Bank||MNBBL||10|
Banks that offer Free ASBA/ C-ASBA Charges in Nepal?
- Kumari Bank Limited
- Nabil Bank Limited
- Nepal Bank Limited
- NIC Asia Bank
- NMB Bank Limited
- Rastriya Banijya Bank
- Sanima Bank Limited
- Siddhartha Bank Limited
ASBA stands for Application Supported by Blocked Amount. When applying for the purchase of publicly traded shares, ASBA withholds a sum equivalent to the value of the securities applied from the investor’s bank account whereas, CDS & Clearing created integrated software C-ASBA to make the ASBA system more structured, accessible, and efficient.
Yes, All retail traders who file for IPOs must go through the ASBA procedure.
Kumari Bank Limited
Nabil Bank Limited
Nepal Bank Limited
NIC Asia Bank
NMB Bank Limited
Rastriya Banijya Bank
Sanima Bank Limited
Siddhartha Bank Limited