The Securities and Exchange Board of India (Sebi) would launch a project to apply the Application Supported against Blocked Amount (Asba) system for cases pertaining to rights issues. This would start the reform process in the primary capital market. Application Supported against Blocked Amount (Asba) system is currently applicable only to initial public offerings (IPOs) for retail investors only. The rights of Tata Motors and Sadhana Nitro Chem are coming on September 29 and these would also come under ASBA.

The SEBI is also interested to apply ASBA to all shareholders and institutional investors. The regulatory body can make 100 percent payment mandatory for institutional investors if the trail remains successful. The investors are required to submit ASBA to the selected bank branch which maintains the account of company. ASBA can be submitted either physically or electronically. It will reduce the time between issuing and listing and make the entire IPO process faster.

The share holders can apply by selecting the Asba option in Part-A of the application form for rights issues and the application would be send to the Self-Certified Syndicate Banks (SCSBs) for further processing.