The expansion of ASBA is Applications Supported by Blocked Amount. It is a procedure that is developed by the SEBI (securities and exchange board of india) for applying to Initial public offer (IPO). In ASBA, the account of IPO applicant doesn’t get debited until shares are allotted to them.
ASBA is a supplementary procedure for applying in public issues floated by the organizations. ASBA can be employed for Rights Issues, IPO & FPO, Debt Issues and Mutual Funds. In ASBA, funds will continue to earn interest throughout the processing period of application. Bank will mark a lien on the deposit account of the investor to the extent of the application money. Lien will be removed instantly after finishing of the basis of allotment. If bid is get successful, the shares allotted will be transferred to the demat account of applicant.
An Investor can apply via ASBA if
1. He/she is eligible to apply in IPO according to SEBI guidelines.
2. He/she is having a current or saving account in a bank.
3. He/she is having Demat account with any of the DP with PAN card number.
4. He/she has enough clear credit balance in his/her current or saving bank account for application money.
No comments:
Post a Comment