An algorithm for time delay estimation in an asynchronous direct-sequence code-division multiple access (DS-CDMA) system with bandlimited signals in a near-far scenario (no tight power control) is presented. The algorithm, which is a modified MUSIC algorithm, is validated through simulations and asymptotic analysis (large number of vector samples) for a square-root raised cosine pulse. It is shown that the algorithm has performance very similar to the case with rectangular pulses and hence it is near-far resistant.