What is Applications Supported by Blocked Amount (ASBA) payment method for IPO?
Introduced in July 2008, Applications Supported by Blocked Amount (ASBA) Process, is the alternative payment method (optional) for IPO application where the IPO bidding amount remains in investors account, but blocked by the bank until allotment is done. This is an addition method of payment, available exclusively for retail individual investors through participatory banks (SCSB’s). The purpose of adding this new payment option is to reduce the turn around time for IPO Stock listing and to make the refund process faster. Technically there is no refund process for this kind of payment option as only the required money for allocated shares is withdrawn from the investors account. Investor can use the remaining money as soon as the required money is withdrawn and the money gets unlock. As companies cannot list there shares before completing the refund process, ASBA will reduce there load on refund process and ultimately will make the listing process faster. ICICIDirect Says: ASBA stands f
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)?
