ASBA
Also called: Application Supported by Blocked Amount
Application Supported by Blocked Amount, the method of applying for public issues in which money is blocked in your bank account and debited only on allotment.
With ASBA, the money for your share application is not transferred when you apply. It is blocked in your own bank account. If you are allotted shares, the amount for those shares is debited; any remaining amount is released. If you get nothing, the whole block is removed.
Individual investors can apply through ASBA using net banking, or through a broker's app using a UPI mandate.
Learn more in these lessons
- IPO basicsWhat is an IPO and how do you apply for one?
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