Kathmandu, Jan. 23:
Muktinath Bikas Bank Limited has been granted the approval for the Application
Supported by Blocked Account (ASBA) system.
The bank issued a press
statement to inform that the Securities Board of Nepal (SEBON) has provided the
ASBA license to it.
Chief executive officer
of the bank Bharat Raj Dhakal said that the bank would provide the ASBA service
from its 47 branch offices.
"Most of the
branches of the bank are in rural and remote areas and, therefore, the people
in the far-flung areas will be benefited from the ASBA services provided by the
bank," he said.
He said that the bank
would provide the service from its three limited banking offices very soon.
Meanwhile, the bank is
planning to move its corporate office from Pokhara to Kathmandu.
ASBA
refers to an application mechanism for subscribing to initial public offers
(IPO).
The
system, which ensures that the applicants' money remain in his/her bank account
till the shares are allotted, was introduced by the Securities Board of India
(SEBI) for retail investors in 2008.
The
system was developed by the SEBI.
The
ASBA system will block the money in the share applicant's bank account until
the shares are allotted.
If
any share is not allotted to the applicants, the bank will unblock the money
upon the instruction of the issue manager.
If
the applicant is allotted the shares, the required money will be debited from
his bank account.
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