ASBA means “Application Supported by Blocked Amount”. ASBA is an
application containing an authorization to block the application money in the
bank account, for subscribing to an issue. If an investor is applying through
ASBA, his application money shall be debited from the bank account only if
his/her application is selected for allotment after the basis of allotment is
finalized, or the issue is withdrawn/failed.
Under ASBA facility, investors can apply in any public/ rights issues by using
their bank account. Investor submits the ASBA form (available at the
designated branches of the banks acting as SCSB) after filling the details like
name of the applicant, PAN number, demat account number, bid quantity, bid
price and other relevant details, to their banking branch by giving an
instruction to block the amount in their account. In turn, the bank will upload
the details of the application in the bidding platform. Investors shall ensure
that the details that are filled in the ASBA form are correct otherwise the form
is liable to be rejected.
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