If you are investing in stocks in Nepal, or, at least applying for an IPO then you might have heard about the C-ASBA charge. This is the fee that is taken by respective depository participants (DP) i.e banks as CASBA charge. Different banks charge different fees while some banks do not charge.
In this article, we are going to discuss CASBA, ASBA, and CASBA Charges of Nepali Banks.
What is ASBA?
ASBA is a short form of application supported by blocked amount. When investors purchase publicly issued securities such as IPO, FPO, Debentures, the ASBA system withholds the equivalent amount from a bank account. Meaning the ASBA system blocks the amount from the respective account holder until the allotment of shares is done. If respective Demat holders are allotted the shares, then the amount is deducted from the bank account and the amount is released if not allotted. In Nepal Securities Board of Nepal (SEBON) has given permission to Bank and Financial Institution to provide ASBA service. Those approved BFI’s can prove the ASBA service to the individual investors.
As of June 2021, there are 65 C-ASBA registered banks and financial services in Nepal.
What is C-ASBA?
On Falgun 11 2074, CDS and Clearing Limited (CDSC) implemented an advanced form of ASBA system called C-ASBA. SEBON also initiated the ASBA process that enabled individuals to apply for shares through their banks. Now, with the help of this system, investors can buy IPO, FPO, Right Shares, Mutual Funds, Debenture online through the Mero Share service.
C-ASBA is a kind of centralized system that links all the BFI’s that provides ASBA related services. The computerized system allows individual’s data to be linked with the Beneficiary Owner’s ID (BOID).
C-ASBA Registration Number (CRN) is the unique number that connects BOID (Demat Number) and the Bank Account of Investors. CRN number is provided by the respective banks to the investors after verifying the BOID. Only those who obtained CRN can apply for the publicly issues securities such as IPO, FPO, Right Shares, Mutual Funds, Debentures.
CASBA Charges of Nepali Banks
Following are the C-ASBA charges of different Bank and Financial Institutes in Nepal.
| Bank | Code | Fee |
|---|---|---|
| Agricultural Development Bank | ADBL | Rs. 5 |
| Bank of Kathmandu | BOKL | Rs. 5 |
| Civil Bank | CBL | Rs. 5 |
| Machhapuchhre Bank | MBL | Rs. 5 |
| Sunrise Bank | SRBL | Rs. 5 |
| Prabhu Bank | PRVU | Rs. 5 |
| Nepal Investment Bank | NIBL | Rs. 5 |
| Himalayan Bank | HBL | Rs. 5 |
| NMB Bank | NMB | Rs. 5 |
| Citizen Bank International | CZBIL | Rs. 5 |
| Everest Bank | EBL | Rs. 5 |
| Laxmi Bank | LBL | Rs. 5 |
| Prime Commercial Bank | PCBL | Rs. 5 |
| Century Commercial Bank | CCBL | Rs. 5 |
| Standard Chartered Bank | SCB | Rs. 5 |
| Global IME Bank | GBIME | Rs. 5 |
| Nepal Credit Commerce Bank | NCCB | Rs. 5 |
Bank with Free C-ASBA Charge
There are four banks as of now that provide free C-ASBA service.
| Banks | Code | Fee |
|---|---|---|
| Kumari Bank | KBL | Free |
| Nabil Bank | NABIL | Free |
| NIC Asia Bank | NICA | Free |
| Rastriya Banijya Bank | RBB | Free |
| Nepal Bank | NBL | Free |
| Sanima Bank | SANIMA | Free |
| Siddhartha Bank | SBL | Free |
CASBA Charge of Development Bank & Finance
| Banks | Code | Fee |
|---|---|---|
| Muktinath Bikas Bank | MNBBL | Rs. 10 |
| Mahalaxmi Bikas Bank | MLBL | Rs. 10 |
| ICFC Finance | ICFC | Rs. 25 |
| Garima Bikas Bank | GBBL | Free |
| Lumbini Bikas Bank | LBBL | Rs. 10 |
| Kamana Sewa Bikas Bank | KSBBL | Rs. 20 |
Source – Share Gyan
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