UBI introduces ASBA service for rights issue of Tata Motors

UBI introduces ASBA service for rights issue of Tata Motors
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First Published: Mon, Sep 29 2008. 04 59 PM IST
Updated: Mon, Sep 29 2008. 04 59 PM IST
PTI
Mumbai: Public sector lender Union Bank of India today said that it has made available the ASBA service to its customers for the rights issue of Tata Motors and Sadhana Nitro Chem, both of which opened today.
ASBA or Application Supported by Blocked Amount is a new payment mode for investors introduced by market regulator Sebi recently.
Here investors can participate in an issue by blocking their funds in the account which is transferred to the extent of allotment, after allotment, in respect of IPOs.
Sebi has extended this facility for rights issues as well.
Union Bank has made the ASBA facility available to its customers through 100 branches across the country, a press release issued here stated.
Applications under ASBA are entertained only by ‘Self-Certified Syndicate Banks´ and UBI is amongst the first five banks for getting this status, the release said.
The bank has earlier successfully handled the public issue of 20 Microns Limited under the ASBA process.
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First Published: Mon, Sep 29 2008. 04 59 PM IST