ASBA payment mode for investors: UBI

{image-union bank of india-logo_29092008.jpg news.oneindia.in}Mumbai, Sep 29: Union Bank of India(UBI) said it has introduced Application Supported by Blocked Amount (ASBA) process, a new payment mode for investors, initiated by the Securities and Exchange Board of India.

Investors could participate in an Issue by blocking their funds in the account which are transferred to the extent of allotment, after allotment, in respect of IPOs. SEBI has extended this facility for the Rights Issues also. The applications under ASBA are entertained only by 'Self Certified Syndicate Banks' (SCSB). Union Bank of India, one of the leading Public Sector Banks, is amongst the first Five Banks, for getting the status of SCSB and has now made this facility available to its customers through 100 branches across the country.

The benefit of this facility is available for the Rights Issue of Tata Motors Limited and Sadhana Nitro Chem Limited, both of which opened on September 29, 2008. The Bank has successfully handled the Public Issue of '20 Microns Limited' under ASBA process.

UNI