Application Supported by Blocked Amount (ASBA)

Definition: Application Supported by Blocked Amount (ASBA) is a process that allows investors to apply for securities in Initial Public Offerings (IPOs) with a blocked amount in their account.
Key Features:
- The blocked amount remains in the investor's account till allotment.
- The blocked amount continues to earn interest.
- There is no requirement of refund in case of non-allotment.
- The requisite amount is debited from the account upon allotment of shares.
Payment Mechanisms:
- ASBA is facilitated by certain branches of collecting banks.
- Investors can also use Unified Payment Interface (UPI) as a payment mechanism to invest in IPOs.
Resources:
- List of collecting banks is available on the SEBI website.
- The process of investing using UPI is explained at Annexure-IV.