How ASBA works?

ASBA works on the fund blocking mechanism.

In the ASBA mode of payment, the investor account is not debited at the time of application. The ASBA application authorises the bank to block the application amount from the investor's account.

The blocked funds will continue to earn interest. Funds will only be debited when investors receive an allotment. The amount debited will also depend on the allotment, whether it is a full allotment or a partial allotment. In case of partial allotment, the remaining funds will be released after the allotment on the refund date and investors can use them.

To apply for an IPO with ASBA, investors must have an account with an ASBA-supporting bank.