Banking Exam Question - What is C-ASBA Service & CRN Number? What are the Procedure for Getting CRN Number in Nepal? Explain

C-ASBA Service & CRN Number in Nepal

In Nepal various Banks has been providing Application Supported by Blocked Amount (ASBA) service. To make share application process more easier and reliable, the bank has registered to C-ASBA system implemented by CDSC (CDS and Clearing Limited). This system temporarily blocks the applicant's amount for any IPO/FPO/Right share application in his/her own bank account and is debited from the accounts only after the allotment process. The customer is charged Rs. 25 (In words Twenty-five Rupees only) per application for this service.

The Customers having bank account in desired bank can register C-ASBA from any branch to obtain CRN (C-ASBA Registration Number). Many commercial bank are also a licensed Depository Participant of CDSC. The customers can open Demat account by contacting any bank branch. The customers can apply for IPO/FPO/Right Share by filling the C-ASBA Application Form. For easier share application process, the customers can also register "MeroShare" service of CDSC (CDS and Clearing Limited) by providing bank account and Demat account number. Through MeroShare, the customers can apply for IPO/FPO/Right Share of any Company via Internet from any location.

The customer can now either visit a branch office or submit application for new IPO/FPO of any public company online. Under the C- ASBA system, customers can approach any branch of Bank to fill up C–ASBA application form and bank provides (CRN) C–ASBA customer registration number after verification of Demat account and bank details. The bank said it is providing services associated with C–ASBA system such as C–ASBA registration, Demat account opening, C–ASBA application processing for investment in IPO/FPO, registration for online submission through “Mero Share” etc. The bank claimed that it is providing all these services to its customer through any branch of the bank without any charges.

As per the directives of CDS and clearing unit, customer should compulsorily collect C-ASBA Registration Number (CRN) from their respective banks for C-ASBA to apply IPO/FPO/right share. So, in this regard branches are informed that the bank has prepared a C-ASBA Registration Form (CRF) which states that the Investor agrees to let the bank to debit or freeze his Bank account if such request was initiated with mentioning the UNIQUE CODE called C-ASBA Registration Number (CRN) that was provided by the bank during Registration.

Procedure/How to Getting CRN Number

1. Investor will fill up CRN form with his Demat Account details and Bank Account details.
2. Bank will check and verify the Demat Account detailsthat is available in C-ASBA application along with the Bank         Account details available in Banking System and the details mentioned in the CRF.
3. Once the detailsis verified, the Bank will register the Client in C-ASBA Client Registration module and provides          unique Code (Pumori Client Code) as CRN to the client.
4. The Client Registration will make the client eligible to apply for the Issue under C-ASBA guideline.

SEBON (Securities Exchange Board of Nepal) has made it mandatory to conduct all IPO/FPO/Right share transactions via C-ASBA, effective from Falgun 11, 2074. So, the applicants can obtain CRN No. as well as submit their share application from all branches of the bank. (Source: Bank's Website & Internet Reference)