Application Supported By Blocked Amount - AU Small Finance Bank
AU Bank
Earn up to 7% interest p.a. on Savings Account

ASBA

About ASBA

    Applications Supported by Blocked Amount (ASBA) is a process developed by the India's Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted to them.
     
    ASBA FACILITY IS NOW LIVE IN AU BANK ,AT THIS TIME ONLY PHYSICAL APPLICATIONS WILL BE ACCEPTED BY AU BANK

ASBA

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.

 

Certification For ASBA Services

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.

 

SEBI Definition of ASBA

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.”

 

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 Investors’

 
“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
 

Benefits of ASBA Facility

The amount remains blocked in your bank account for the IPO application.
 
There is no loss of interest. The account continues to earn interest on the funds blocked. The blocked fund is debited post allotment and then the interest stops on the debited part.
 
There is no need to wait for your refund cheques/ECS credits.
 
Bank will unblock the application money from the frozen accounts in case the application is rejected or there is no allotment or the issue is withdrawn. For this, the Bank will receive instructions from the registrar of the issue.
 
The blocked amount is considered while calculating average quarterly balance (AQB) in the account.
 
The application form is simple and easy to fill
 
The applicant need not have to submit any physical documentation to avail of this facility.
 
This facility is absolutely free.
 

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 correctly the ASBA forms for the IPO. 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 and 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. So give full attention while filling your application. After that, you need to submit your correctly filled application with your AU Bank branch. The bank will further process your application .
 
ONLINE MODE IS NOT AVAILABLE RIGHT NOW THROUGH AU SMALL FINANCE BANK LTD
 

Blocking of Account

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 .

Empowering Customers