Things to Know about ASBA

Consumer Voice - - Contents -

Un­der ASBA, short for ‘ap­pli­ca­tion sup­ported by blocked amount’, in­vestors can ap­ply in public/rights is­sues by us­ing their bank ac­count. It pro­vides an al­ter­na­tive mode of pay­ment in is­sues whereby the ap­pli­ca­tion money re­mains in the in­vestor’s ac­count till fi­nal­iza­tion of ba­sis of al­lot­ment in the is­sue. Ba­si­cally, it con­tains an au­tho­riza­tion to block the ap­pli­ca­tion money in the bank ac­count. So, if an in­vestor is ap­ply­ing through ASBA, their ap­pli­ca­tion money shall be deb­ited from the bank ac­count only if their ap­pli­ca­tion is se­lected for al­lot­ment af­ter the ba­sis of al­lot­ment is fi­nal­ized, or the is­sue is with­drawn/has failed. Read on to find out if you are el­i­gi­ble to ap­ply through ASBA, and whether you should ap­ply through ASBA in the first place.

An in­vestor sub­mits the ASBA form (avail­able at the des­ig­nated branches of banks act­ing as self-cer­ti­fied syn­di­cate banks [SCSBs]) af­ter fill­ing in the re­quired de­tails like name of ap­pli­cant, PAN num­ber, de­mat ac­count num­ber, bid quan­tity, and bid price, along with an in­struc­tion to block the amount in their ac­count. In turn, the bank will upload the de­tails of the ap­pli­ca­tion in the bid­ding plat­form. In­vestors will en­sure that the de­tails that are filled in the ASBA form are cor­rect; oth­er­wise the form is li­able to be re­jected.

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