Understanding ASBA & C-ASBA in Nepal

Application Supported by Blocked Amount (ASBA) is a system introduced by the Securities Board of Nepal (SEBON) to streamline investments in the primary securities market. With ASBA, investors can apply for publicly issued securities while keeping their investment amount in their bank account. The specified amount is temporarily blocked until the allotment process is completed. Once shares are allotted, the required amount is deducted, and any unallocated funds are released back to the investor.

Introduction of C-ASBA

To enhance the efficiency of ASBA, CDS & Clearing Limited launched the Centralized Application Supported by Blocked Amount (C-ASBA) system. This centralized system, implemented on Falgun 11, 2074 (February 23, 2018), integrates all financial institutions offering ASBA services with investors’ demat accounts. C-ASBA ensures verification of bank account details before processing applications, minimizing errors and expediting the allotment process.

C-ASBA Registration Number (CRN)

Investors are required to obtain a C-ASBA Registration Number (CRN) from their bank after linking their demat account. Only those with a CRN can directly apply for securities through their bank account. Investors without internet access can apply by visiting their bank with the CRN and submitting a physical application form.

Steps to Obtain a CRN

To get a CRN, investors should follow these steps:

1. Visit an authorized ASBA-member bank.
2. Open a bank account if they do not already have one.
3. Fill out the C-ASBA application form, including demat account details.
4. Submit the form; the bank will verify the details and issue the CRN.

With a CRN, investors can apply for primary securities such as Initial Public Offerings (IPO), Further Public Offerings (FPO), and Rights Shares. However, a CRN is not required for secondary market transactions.

Applying for Primary Shares Through C-ASBA

Investors can apply for primary shares using either online or offline methods:

Online Method (Mero Share):

1. Open a bank account with an ASBA-approved bank and a demat account.
2. Obtain a CRN from the bank.
3. Access the Mero Share platform (meroshare.cdsc.com.np) and submit an application online.

Offline Method:

1. Visit an ASBA-member bank.
2. Fill out a physical share application form, including the CRN, demat number, and bank details.
3. Submit the form to the bank for processing.

The C-ASBA system simplifies the share application process and ensures a faster, more reliable allotment and fund settlement process for investors in Nepal’s capital market.