ASBA……..

Application supported by Blocked Amount (ASBA) is a mechanism to subscribe to IPO through book building mechanism and rights issues. In ASBA applicants money remains in their bank account till the shares are allotted as opposed to paying the subscription amount upfront and getting a refund in case shares are not allotted.

ASBA applications can be submitted either by filling a specific form either in physical format or online. If an IPO is oversubscribed then all the applicants may not get the shares they had bid for . In non ASBA method an applicant awaits the refund for which no shares were allotted . But in ASBA the bank account is debited only after the basis of allotment is finalised or if the IPO is withdrawn or it fails.