ipo

What is ASBA (Application Supported by Blocked Amount)?

ASBA allows the investors money to remain with the bank till the shares are allotted after the IPO. The funds are transferred after the allotment and to the extent of allotted shares. This is an application mechanism which completely eliminates the need for refunds in the case of partial allotment and no allotment.

Initially, QIBs were not allowed to participate in IPOs through ASBA facility; however, with effect from May 2010, investors in all categories can apply through ASBA. It is important to note that all banks do not offer this facility. A list of Self Certified Syndicate Banks (SCSBs), which is updated regularly, can be found on SEBI website.


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