Apply in IPO through ASBA

Investors can now apply for securities in IPOs through ASBA. In ASBA, money to the extent of price of the shares for which the investor has applied, is blocked, but it remains in your account till allotment. Upon allotment of shares, etc., requisite amount is debited from your account. Blocked amount continues to earn interest and there is no requirement of refund in case of non-allotment. Thus, instead of actually sending a cheque for applying in IPOs you can now apply through Application Supported by Blocked Amount (ASBA) which is facilitated by certain branches of collecting banks. List of these banks is available on the website of SEBI. Investors can now invest in IPOs by using Unified Payment Interface (UPI) as a payment mechanism.Apply in IPO through ASBA

To know more about ASBA, please watch the following videos: -