The full form of ASBA is ‘Application Supported by Blocked Amount’. The application gives an authorization to bank for blocking the application amount in your bank account, for subscribing to an Initial public offering (IPO) of Shares /NFO of Mutual Funds/Follow on Public Offer (FPO). The authorization for blocking application money is done by the Bank where client has his Account . If you are applying through ASBA, your application money will debited from the bank account only if your application is selected for allotment after the basis of allotment is finalized.
AU SMALL FINANCE BANK LTD is 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.
As per definition in clause (d) of sub-Regulation (1) of Regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009, ASBA is –
“An application containing an authorization to block the application money in the Bank account for subscribing to an IPO/FPO or Rights Issue.”
A retail investor is eligible to apply through ASBA process if he/she :
An Investor who applies through ASBA is known as ‘ASBA Investors’
Client entire bank balance is not blocked, But only an amount equivalent to his/her application money is blocked in bank account. Balance amount can be used by client .
In 2016, after the demise of her husband and two sons, Hema took charge of her husband’s Motor Driving School. AU Bank transferred the car loans in her name and provided support when Hema needed it the most. After one year, Hema became independent and her business is running better then before. She is also providing employment to four drivers in her Motor Driving School.
AU Bank was very quick. The customer service was very cheerful and helpful there. They sort everything very nicely.
Raju Bhai a progressive farmer who hails from a village near Ahmedabad had understood that dependence on agriculture alone for livelihood will never be enough to fend for his family. AU Bank extended support and gave wings to his aspirations by catering to his financial requirements.
Raju Bhai is earning handsome surplus, besides the income from his agriculture income. He has a well-settled pick-up vehicle business with three vehicles and two drivers who are paid 8000 each.