What is ASBA how to apply ASBA

If you want to invest in an IPO then you must know how to place an IPO through ASBA. The full form of ASBA is Application Supported by Blocked Amount. This method is used to place the IPO through the net banking offered by the banks which should be used by the investors with the easy steps in the article below.

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What is ASBA?

ASBA (Application Supported by Blocked Amount) is a process developed by SEBI to invest in IPO, Rights issues, FPS, etc. As per ASBA, the investors have made it very easy to invest in IPO and the amount will be blocked till the IPO allotment comes or before the listing day of the IPO. The bank states that the investor should choose the ASBA option to apply for the IPO by logging into his bank account through his net banking. After that select the IPO and fill in the detailed information required by the ASBA form.

It is easy if you are tech-savvy. Just follow the steps and you will be able to see the application submitted under ASBA in your bank account. If an investor will get an allotment, the amount will be deducted from the bank account and the bank will be informed through SMS, or a lien balance will be issued on the allotment date or before the IPO listing.

ASBA Abbreviated Application Backed By Blocked Amount is an IPO application process developed by SEBI. It is an application that has the authority to block the application amount in the bank account for subscription to the issuance of an IPO. You cannot use the blocked amount for any purpose. However, you can continue to earn interest in the blocked amount. If you are a non-retail investor looking to invest in an IPO, it is mandatory to apply through ASBA.

As an investor, if you apply through ASBA, your money is debited from your bank account only when your application is selected for allotment. If you do not receive the IPO issue or the issue is withdrawn then it is returned to your bank account. Since 2016, SEBI has directed that it is mandatory to fill ASBA form if you want to invest in IPO.

Eligibility Criteria for ASBA

Here are some of the eligibility criteria for ASBA:

You are an Indian residential investor.
You should have a valid PAN number along with a Demat account and trading account.
You have to apply through the blocking of funds in the bank account with self-certified Syndicate Banks.
You should have an adequate balance in your bank account.
You should bid at cut-off, with a single option of a number of shares to bid for.
You should not bid under any of the reserved categories.
You have agreed to the terms and conditions of not revising a bid.

How to apply for IPO through ASBA Online?

Log in to your Bank Account via Net-Banking or Bank Mobile App
Go to the Online IPO section or ASBA.
Select the IPOs you want to apply
Enter your depository details
Fill in bidding details like category, quantity, and amount
Place and confirm your Order
Accept the “Terms & Conditions” before submitting the bid
The IPO Application has been Submitted
IPO Application Bid will be sent to the stock exchange by Bank
The exchange accepts the Bid and sends the Application number to Bank
The bank shows the message for a successful bid
On the last day exchange shares details with the registrar
The registrar completes the IPO allotment process as per the basis of the allotment
If the investor gets the allotment registrar transfer shares to the Demat account
An investor can sell the shares on the IPO listing day

ASBA Cut-Off Time offered by Banks on the Last Day of an IPO.

There are different Bank ASBA timings as per their rules. Here are a few of the bank names that allow IPO Applications on the last day from 2 PM to 4 PM.

SBI Bank – 2 PM
Kotak Mahindra Bank – 2 PM
Punjab National Bank – 2 PM
Corporation Bank – 2 PM
IndusInd Bank – 2 PM
Bank of Baroda 3 PM
Andhra Bank – 3 PM
ICICI Bank – 3 PM
Axis Bank – 3 PM
Yes Bank – 3 PM
Dena Bank – 3 PM
IDBI Bank – 3 PM
Bank of India (BoI) 3 PM
RBL Bank – 3 PM
HDFC Bank – 4 PM
Central Bank – 4 PM
Canara Bank – 4 PM

How to check ASBA IPO Application Status?

Log on to our IPO Allotment Status page
Click on the IPO name to check the status
Choose the company name and enter the PAN Number
Submit the request

ASBA IPO Application Example of SBI Bank?

Login to SBI Bank NetBanking – https://www.onlinesbi.com/
Click on eServices Tab
Click on Demat & ASBA Services
Click on IPO Equity
Select IPO
Enter Details in the Form like DP ID, BID, Name, Pan Card, and more
Verify & Confirm Your Order

It’s Done. It’s easy and simple but you need funds in your SBI Bank account so that it can be blocked when you apply for the IPO through SBI NetBanking. Once you apply amount will be blocked and it can be used after the unblocking funds if you do not get the IPO allotment. If you get the allotment the shares of the company will be credited to your Demat Account.

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