What is ASBA ?

If you have filled any IPO form, you must have surely came across the term ASBA
But do you know what is ASBA?
ASBA stands for Application Supported by Blocked Amount
ASBA is an application containing mandate to block the application amount in the bank account to subscribe to an equity issue. An investor can use ASBA to make payment of Public issue in place of cheques.
The investor needs to submit a simple ASBA compliant form to valid SCSB bank branches.
An IPO Applicant’s account gets debited only when the shares are assigned to him. Meanwhile, he continues to earn interest on this blocked amount if applicable.
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