What is ASBA IPO?

ASBA for IPO is the payment mode that helps investors to apply for an IPO easily and quickly.

ASBA stands for Application Supported by Blocked Amount. It is an IPO application process that provides authorization to the Self-Certified Syndicate Bank (SCSB) to block funds for the IPO from the applicant's bank account for subscribing to an issue.

With ASBA, the application amount is not debited from the bank account until investors receive an allotment. Investors can use the ASBA method to apply for an IPO either online or offline. Once the payment is completed, the bank will block the amount from the ASBA account number.