|Definition||:||Application Supported by Blocked Amount|
|Category||:||Business » Banking|
What does ASBA mean?
Application Supported by Blocked Amount (ASBA) is a process developed by the Securities and Exchange Board of India (SEBI) for the purpose of subscribing to shares in an Initial Public Offering (IPO). ASBA is an application by an investor containing an authorization to Self Certified Syndicate Bank (SCSB) to block the application money in the bank account, for subscribing to an issue. It is an additional mode of payment for investment in shares. If an investor is applying through ASBA, his/her application money shall be debited from the bank account only if the application is selected for allotment after the basis of allotment is finalized. This means as long as the IPO shares are not allotted to the applicant, the funds stay in the applicant's account. In the case of non-allotment, the entire amount will get unblocked on the stipulated date.
SCSB is a bank that is recognized as a bank capable of providing ASBA services to its customers.
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Frequently Asked Questions (FAQ)
What is the full form of ASBA?
The full form of ASBA is Application Supported by Blocked Amount