“ASBA IPO Application Process"
ASBA stands for "Application Supported by Blocked Amount."
It is a process introduced by the Securities and Exchange Board of India (SEBI) for applying to Initial Public Offerings (IPOs) in India.
ASBA allows investors to apply for IPO shares by blocking the application amount in their bank accounts until the shares are allocated.
Here's how the ASBA process works:
Investor’s Bank Account: The investor needs to have a bank account with a bank that is registered with the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) to apply through ASBA.
ASBA Application Form: The investor fills out the IPO application form and selects the ASBA option. The form is available with the designated syndicate member or through online platforms provided by the stock exchange or registrar to the issue.
Blocking of Funds: The investor provides authorization to block the application amount in their bank account equal to the IPO application value. The funds remain in the investor’s account and are not debited.
Application Submission: The investor submits the ASBA application form to the syndicate member or uploads it through the online platform. The syndicate member verifies the details and forwards the application to the Registrar to the Issue (RTI).
Application Verification: The RTI verifies the application details and ensures that the required funds are blocked in the investor’s account.
Allocation and Refund: After the IPO subscription period ends, the shares are allotted to successful applicants. The blocked funds for unsuccessful applicants are released, and the funds for allocated shares are debited from the investor’s account. Any excess amount is refunded.
