Explain Applications Supported by Blocked Amount (ASBA)?
• SEBI has addressed a long-standing demand of retail investors whose IPO application money is often blocked for weeks even when they are not allotted shares. • For the benefit of retail investors SEBI has now Introduced Applications Supported by Blocked Amount (ASBA)’ process. • The ASBA process will be offered by ‘Self Certified Syndicate Banks’ (SCSB). • The Applications Supported by Blocked Amount (ASBA)’ process will require SCSBs to accept applications from investors, block the funds to the extent of the bid payment amount and then upload the details in the electronic bidding system. Once the basis of allotment is finalised, the amount required by the issuer will be released and the remaining will be unblocked by the SCSB. • Banks will be responsible for resolving the investor grievances. In case of failure of an issue, the bank will have to immediately release the block on receipt of request from the registrars. Registrars are required to maintain electronic records relating to
Related Questions
- Where should I submit my Application Supported by Blocked Amount (ASBA)? How shall I know which bank and which branch of that bank is the designated branch for accepting ASBA application?
- What is Applications Supported by Blocked Amount (ASBA) payment method for IPO?
- Explain Applications Supported by Blocked Amount (ASBA)?
