What is ASBA?

What is ASBA?

Application Supported by Blocked Amount (ASBA) is a SEBI-established procedure for IPO applications. It is often referred to as ASBA. The full form of ASBA is Application Supported by Blocked Amount. This method requires the submission of an application that authorizes the securing of funds in a bank account in order to subscribe to an IPO. These funds cannot be used for other purposes, but they can accumulate interest....

Eligibility for ASBA

Here are some of the essential requirements for eligibility for ASBA:...

Features of ASBA

Here are the main characteristics of ASBA:...

How does ASBA Work?

In simple words, ASBA is like informing your bank that you desire to buy shares in a company that is going public. You avoid paying all the money at once. Instead, you keep some money aside in your bank account. You give your bank permission to use that money to purchase the shares if you are allotted any. The bank examines everything and makes sure that your approach is appropriate. If you get shares, they pay for them with the money set aside. If you are not allotted the shares, the bank gives you back the money you set away. So, ASBA lets you put money aside to buy shares, and you only pay for them if you get them. Let us look at the entire process :...

Benefits of ASBA

Here are some of the distinct benefits for investors who apply through the ASBA process:...

Applying for ASBA

ASBA applications can be submitted both online and offline. The following are some of the steps to apply for ASBA....