Banks with the new IPO payment facility

11 Banks participated in the mock test for the new IPO payment facility conducted by the Bombay Stock Exchange (BSE). The 11 banks that participated in the mock test were Bank of Baroda, Corporation Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indus Ind Bank, Kotak Bank, Punjab National Bank, State Bank of India, SBBJ and Union Bank. The first IPO in which the facility will be used is that of 20 Microns, which opens on Monday.

This facility, called the Application Supported by Blocked Amounts (ASBA), helps to retain the money in the applicant's account itself, as a blocked fund till the time of allotment of shares. Only that amount proportionate to the share allotment will be transferred from the account.

“BSE has successfully tested its interface with 11 banks for participation in the ASBA (Application Supported by Blocked Amounts) process,” said a BSE news release.