ASBA (Application Supported by Blocked Amount) is an IPO application process developed by SEBI. It authorizes the blocking of the IPO application amount in the bank account, for subscribing to an IPO. You cannot use the blocked amount for any other purpose while your application is still live. In ASBA, an IPO applicant's bank account doesn't get debited for the amount until the shares are allotted to them.
There are two types of ASBA:
- Net banking based ASBA
- UPI based ASBA
At Upstox, you can apply for IPOs only via UPI based ASBA.
As an investor, if you apply for an IPO via ASBA, your money gets debited from your bank account only if your application is successful and you get allotment. The amount is refunded to your bank account if you do not get the IPO issue or the issue has been withdrawn by the company.
Click here to see a list of SCSBs (Self Certified Syndicate Banks) via which investors can submit their UPI based ASBA Applications.