ASBA is an acronym for Application Supported by Blocked Amount. It is an application that authorizes to block the application money in the investor bank account. The money is debited upon allotment of shares through IPO.
ASBA Forms are available at all Self certified Syndicate Banks (SCSB). Investor fills in details like name of the applicant, PAN number, Demat account number, bid quantity, bid price and others to the bank. After submission, the amount is blocked in the investor account.
ASBA forms are available online on the NSE website and also the Book Running Lead Managers website.
ASBA is mandatory for all IPOs after January 1, 2016
Self-certified Syndicate bank is recognized as a bank capable of providing ASBA services to its customers. Investors can avail the list of SCSBs from the SEBI/NSE website
ASBA can be submitted to an SCSB where the investor is holding the account
Investors can submit ASBA forms online, offline through branches or through brokers.
On withdrawal of the IPO bid during the bidding period, SCSB deletes the bid and unblocks the application amount. If the withdrawal is made after the closure date, then the amount is unblocked as per the instructions from the Registrar.
At the time of submission, all investors will get a counterfoil on uploading applications through ASBA. A counterfoil as well as the order number is generated and will be provided for investors by the SCSBs on demand.
ASBA form can be submitted at any branch provided the investor has an account in the bank.
