InvestorQ : What is Application Supported by Blocked Amount (ASBA)?
Arya Nanda made post

What is Application Supported by Blocked Amount (ASBA)?

Answer
user profile image
Anjana Aiyar answered.
2 years ago


This is an application mechanism which completely eliminates the need for refunds in the case of partial allotment and no allotment. 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. 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. As on September 2014, there are 57 banks registered with SEBI to act as SCSBs.