e - INVEST

IPO-APPLICATIONS SUPPORTED BY BLOCKED ACCOUNTS

SBI has brought a new hassle free solution for investment in IPO called e-Invest. Under the instruction of SEBI Bank has introduced this supplementary process for applying in public issue. Unlike the current system of applying in IPO issues, under e-Invest your funds are not blocked unproductively with application money till the finalization of the bid but will continue earning interest for the application processing period. Bank will mark a lien on the deposit account of the investor to the extent of the application money till the time application is rejected or withdrawn. Lien will be unmarked immediately after knowing the fate of the application. If bid is successful lien will be unmarked and the amount of application money will be transferred to the issuer according to the instruction of the Registrar of the issue.

An Investor can apply under e-Invest if he fulfills following criterion:

He/ She is a “Resident Retail Individual Investor”,
He/ She is bidding at cut-off, with single options as to the number of shares bid for,
He/ She has agreed not to revise his/ her bid,
He/ She is not bidding under any of the reserved categories,
He/ She has sufficient clear balance in his/her Saving Bank or Current account (with SBI) for application money. (In due course it will be extended to amount held in Term deposit)