Features of ASBA
- Secure mechanism: ASBA offers a secure fund mechanism for investors to subscribe to public issues.
- Accountability for funds: No possibility of funds of the investor getting lost.
- Auto-credit on successful subscription: If shares are subscribed successfully, then they are automatically credited to your Demat account.
- No cost: ASBA is a free facility that requires no physical documentation.
Benefits of ASBA
- Simple process: Either you can submit your ASBA application through AU 0101 App or submit the ASBA application form at our branch, which is simple to fill and submit.
- Security of funds: ASBA allows the application money to remain blocked in your account and not get debited until shares are allotted to you. In case of non-allotment, we will automatically unblock the amount in your account. This will be done upon receipt of information from the registrar of the issue.
- No interruption on interest: ASBA facility is beneficial in providing interest continuously on the blocked amount until it gets debited post allotment.
- No lengthy processes: There is no need to wait for refund cheques or ECS credit if you opt for ASBA.
Eligibility criteria for ASBA
- The applicant should be an Indian residential investor with a valid PAN Card along with a Demat and trading account.
- Applicants should have an adequate balance in the account to subscribe to the issue.
- Applicants should not bid under any of the reserved categories.
How to apply for ASBA?
You can apply for ASBA either online or offline.
- Online: Through AU 0101 App
- Offline: The ASBA form is available on BSE and NSE websites, or you can approach our nearest bank branch. The applicant needs to provide correct information about the name, bank account number, DP number, etc. However, the application gets rejected if there is any information mismatch with your bank account or PAN Card or if your application form remains incomplete.
Details on Blocking of Account
On applying for an IPO, your entire bank balance is not blocked, only an amount equivalent to your application money is blocked in bank account. The balance amount can be used for your spends.
Certification For ASBA Services
At AU Small Finance Bank, we are recognized by SEBI as a bank which is capable to provide ASBA services to customers. SEBI website enlists the names of such banks and their branches and updates it regularly.
Fees and charges of ASBA
With us, ASBA is a free facility.
FAQs
Q1. What is an ASBA bank account? 
ASBA bank account is nothing but an ASBA-enabled savings bank account that allows applicants to subscribe to an IPO, FPO, Rights Issue, etc. An applicant can avail of the ASBA facility from us, which will enable us to block the application money for the IPO issue or any other public issue. Since 2016, SEBI has mandated that if you wish to invest in an IPO, you will need to use the ASBA facility.
Q2. Is ASBA mandatory for IPO?
Yes, it is mandatory in all public issues like Rights Issue, FPOs, and IPOs. Every subscriber is required to pay through ASBA as a mode of payment and should also only provide ASBA as the mode of payment.
Q3. Is ASBA safe?
Yes, ASBA is entirely safe as it is a process developed by SEBI. Through ASBA, when you subscribe, only the application money gets blocked and not your entire account. Only if allotment happens will the blocked amount be deducted from your account. If the issue is withdrawn or rejected, your funds automatically get unblocked. Hence, ASBA is safe as your funds remain perfectly safe in your account.
Q4. Can I apply for an IPO through ASBA?
Yes, you can apply for an IPO through ASBA. ASBA is a process developed by SEBI to allow investors to subscribe for IPOs, FPOs, and other public issues.
Q5. Who can use ASBA facility ?
A retail investor is eligible to apply through ASBA process if he/she:
- A residential retail investor
- Has a Demat A/C with any of the Depository participant like NSDL or CDSL along with valid PAN
- Has clear balance in his/her savings or current account
- Is bidding at cut off
An Investor who applies through ASBA is known as ‘ASBA Investor’
“ASBA investors” must provide accurate information in the application regarding:
- PAN card number
- DP ID (depository participant identification) number
- Client identification number or the Clients ID from your broker’s account
- Bid Quantity
- Bank account number
Q6. What is the process for ASBA?
You have two options to apply for an IPO through ASBA if you are an Indian resident. The two options are online mode and offline mode.
Under offline mode, you have to fill the ASBA forms correctly for the IPO application. The ASBA form is available from BSE website, NSE website or from your branch. You need to fill correct information on your name, bank account number, your DP number etc. The application gets rejected if there is any mismatch of information with your bank account or PAN information or even if the form remains incomplete. After that, you need to submit your correctly filled application with your AU Small Finance Bank branch. The bank will further process your application.
ONLINE MODE IS NOT AVAILABLE RIGHT NOW THROUGH AU SMALL FINANCE BANK LTD
