Categories: Stocks

Application Supported by Blocked Amount (ASBA)

ASBA or Application Supported by Blocked Amount is an application with an authorisation for blocking the amount required for applying to an IPO. The required amount is blocked and gets utilised towards the IPO only if the application gets an allotment. If there is no allotment, the amount is released to the customer’s bank account.

What are the benefits of ASBA?

Benefits of ASBA are:
1. The said amount remains in the customer’s bank account and thus continues to earn regular interest
2. There is no issue related to refund, because the amount gets blocked, and is not deducted from the account.
3. ASBA is a paperless facility and investors can use it to apply for IPO/FPO/Rights Issue

abhilash.st

Share
Published by
abhilash.st

Recent Posts

PPF calculator

A PPF calculator is an online tool that helps you calculate the maturity amount at…

1 year ago

Non-Resident Indian (NRI) PPF Account

Non-resident Indians are not allowed to open a new PPF account. However, if a resident…

1 year ago

Minor Account

A PPF account can be opened by a parent or guardian on behalf of a…

1 year ago

Joint Account

PPF rules do not allow joint accounts. An account can only be opened in the…

1 year ago

Extension of PPF Account:

After the maturity of the PPF account, you have the option to extend it for…

1 year ago

Withdrawal

From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…

1 year ago