There are two ways to apply for IPO in Nepal. One is online through MeroShare, and another method is by visiting the Bank and filling the ASBA form. In both cases, you may have to pay an extra amount for the ASBA service depending on the Bank. The amount of ASBA charge varies depending upon the bank.
What is ASBA?
The full form of ASBA is Application Supported by Blocked Amount. In this service, Bank blocks money on the specified Bank account as per customers’ requirements. Such an amount will remain blocked on the customer account until the date of allotment of IPO/ FPO.
After allotment, the amount for the allotted quantity of securities gets deducted. And the rest of the amount gets released as usable balance. With the ASBA service, investors applying for publicly issued securities can directly invest from their own Bank account.
What is C-ASBA?
C-ASBA is an organized and centralized form of ASBA. C-ASBA is developed by CDSC that links all the Banks and Financial institutions providing ASBA service and Demat account creating a centralized system. C-ASBA service makes the application verification process easy. C-ASBA system came into implementation from Falgun 11, 2074.To use the C-ASBA service, one must obtain C-ASBA Registration Number. Otherwise, it wouldn’t be possible to apply for IPO from their own Bank account
ASBA/ C-ASBA Charges of Commercial Banks in Nepal
ASBA charges are different in different Banks. Therefore, we decided to research and present the data of ASBA charges of different commercial Banks in Nepal. The following is the list of C-ASBA / ASBA charges deducted by Commercial Banks in Nepal.
| Bank | ASBA / C-ASBA Charges |
|---|---|
| Global IME Bank Limited | NPR 0 (Free) |
| Mega Bank Limited | NPR 0 (Free) |
| Nabil Bank Limited | NPR 0 (Free) |
| Nepal Credit And Commerce Bank Limited | NPR 0 (Free) |
| NIC Asia Bank Limited | NPR 0 (Free) |
| Rastriya Banijya Bank Limited | NPR 0 (Free) |
| Sanima Bank Limited | NPR 0 (Free) |
| Siddharth Bank Limited | NPR 0 (Free) |
| Nepal Bank Limited | NPR 25.00 Per Year |
| Agriculture Development Bank | NPR 10 Per Application |
| Bank of Kathmandu Limited | NPR 10 Per Application |
| Civil Bank Limited | NPR 10 Per Application |
| Nepal Bangladesh Bank Limited | NPR 10 Per Application |
| Machhapuchchhre Bank Limited | NPR 10 Per Application |
| Prabhu Bank Limited | NPR 10.00 Per Application |
| Prime Commercial Bank Limited | NPR 10.00 Per Application |
| Sunrise Bank Limited | NPR 10.00 per application for MeroShare users. And NPR 25 per application, Applying through C-ASBA visiting the Bank. |
| Citizen Bank international Limited | NPR 20.00 Per Application |
| Everest Bank Limited | NPR 20.00 Per Application |
| Himalayan Bank Limited | NPR 20.00 Per Application |
| Kumari Bank Limited | NPR 20.00 Per Application |
| NMB Bank Limited | NPR 20.00 Per Application |
| Nepal Investment Bank Limited | NPR 20.00 Per Application |
| Century Commercial Bank | NPR 25.00 Per Application |
| Nepal SBI Bank Limited | NPR 25.00 Per Application |
| Laxmi Bank Limited | NPR 25.00 Per Application |
| Standard Chartered Bank Nepal Limited | NPR 100.00 Per Application |
The C-ASBA charge is revised by Banks from time to time. If you find anything incorrect, please let us know from the comment section below.
Many Banks that used to provide free C-ASBA service have started to charge some amount for this service. The reson behind it is, in the current scenario, many companies are making an initial public offering. Similarly, the number of investors applying for IPO has been also increased drastically. Which is helping the Banks and Financial institutions to make easy revenue from C-ASBA service.
A bank being able to collect 100,000 application can now earn NPR. 20-25 lakhs per IPO from the service which they were providing for free. Therefore, we can see the change in IPO charge in Nepal.
Banks Providing Free ASBA Service In Nepal
Out of 27 commercial banks in Nepal, only 8 of them are providing C-ASBA service for free in Nepal.
- Global IME Bank Limited
- Mega Bank Limited
- Nabil Bank Limited
- NCC Bank Limited
- NIC Asia Bank Limited
- Rastriya Banijya Bank Limited
- Sanima Bank Limited
- Siddharth Bank Limited
Some Frequently Asked Questions
What is ASBA?
The full form of ASBA is Application Supported by Blocked Amount. In this service, Bank blocks money on the specified Bank account as per customers’ requirements. Such an amount will remain blocked on the customer account until the date of allotment of IPO/ FPO.
Which Banks in Nepal Offer Free ASBA?
The following Commercial Banks are Offering free ASBA service in Nepal.
- Global IME Bank Limited
- Mega Bank Limited
- Nabil Bank Limited
- NCC Bank Limited
- NIC Asia Bank Limited
- Rastriya Banijya Bank Limited
- Sanima Bank Limited
- Siddharth Bank Limited
Why Bank Deduct ASBA charge?
Banks debit certain amount from your account as the service charge for blocking the amount required for applied share on IPO.
Can I Earn Interest on ASBA?
Yes. You can earn interest on ASBA (application supported by blocked amount)
As per the application submitted by you, your money gets blocked in the account until the allotment of the shares. The amount as per the allotment is debited from your bank account only after the allotment process.
Therefore, you will continue to earn regular interest in the application supported by blocked amount (ASBA) held in the account during the time frame.
Why ASBA is Important?
Through ASBA, you can apply for shares during Initial Public Offering (IPO), Further Public Offer (FPO) or Mutual Fund, through your bank account.
Which Bank has the highest amount of ASBA charge?
Standard Chartered Bank charges the highest amount of ASBA charge which is NPR 100 per application.
How much is the ASBA charge of Prabhu Bank?
The Asba charge of Prabhu Bank Limited is NPR 10. Previously, it was NPR 1 per application and increased to NPR 10 from 1st April, 2020.
How much is C-ASBA charge of Sunrise Bank Limited?
The C-ASBA charge of Sunrise Bank Limited is NPR. 10 only for MeroShare users. For other who are applying through C-ASBA visiting the Bank, Sunrise Bank will charge NPR 25 per application.
Also Check Out
Sir, Kun bank ma account kholda ramro service milla? Please Vandinus Sir !!
I recommend NIC ASIA (free) and you can apply for IPO from their Mobile Banking App without even logging in to MeroShare Account.