InvestorQ : What are the major advantages that I as an IPO applicant get from ASBA and should I opt for it?
NISHA Nayak made post

What are the major advantages that I as an IPO applicant get from ASBA and should I opt for it?

Answer
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Mitali Bhutta answered.
11 months ago


ASBA in IPO does come with some distinct advantages for investors. Let us look at some of them.

a) The ASBA funds are released or used against allotment within a period of 7 days flat. This is a big shift from the old system when funds were tied up for more than a month.

b) You continue to earn interest on your ASBA funds till the money is actually debited to your bank account. That helps your float.

c) Within ASBA, if you use the online application facility, then you have greater control over the entire process and also more transparent.

ASBA is an important development especially for the small and retail investors. Go ahead and make the most of it.