What is ASBA (Application Supported by Blocked Amount)?
ASBA is a facility used by investors to apply for IPOs. When applied through ASBA, the amount of the application remains blocked in your bank account until the allotment of shares is out.
In 2008, SEBI introduced the ASBA facility, ensuring an easy and transparent process, keeping the investors’ funds secure until allotment. If the allotment is received, the blocked amount gets transferred to the companyās account; if not, then the amount gets unblocked, which investors can use to make transactions.
In Which Scenarios Are ASBA Facilities Helpful to Investors?
The following are the scenarios where ASBA facilities can be helpful to investors:
Safety and transparency matter:Ā Ā
While using ASBA facilities, investors need not worry about their funds being misused. Since it is an SEBI-regulated facility, even first-time investors can easily trust and apply through the ASBA facility. Your money stays blocked in your bank account, and is released upon not receiving allotment. No extra fuss, just a simple and secure way to apply for IPOs.
Time-saving process
There was a time when investors had to wait for 1-2 months for their IPO application refund in case of non-allotment. But the ASBA facility saves time and effort; there is no more waiting for a refund. The blocked amount gets unblocked after 1-2 days of non-allotment.Ā
Continuous interest on blocked fundsĀ
Unlike earlier, ASBA blocks the IPO amount in your bank account instead of deducting it. Since the amount is only blocked, the bank’s interest on the blocked funds continues. Investors who apply for multiple IPOs or do multiple applications can benefit from this facility.
ASBA to make the IPO process seamless and simple
ASBA facility works seamlessly with the net-banking app, IPO broker platform, or UPI-based IPO application. This does not require any paperwork but makes the IPO application process smooth and simple.
Using the ASBA Facility for other investment issues
The ASBA facility does not restrict itself to IPOs only. Through ASBA, investors can also apply for FPOs, rights issues, and Mutual fund NFOs. Since 2016, SEBI has made it mandatory for all investors to use the ASBA facility to apply for IPOs.
How to check the allotment status on ASBA
To check the allotment status on ASBA (Application Supported by Blocked Amount), follow the given steps:
- Log in to your Net Banking/ Mobile Banking app
- Go to the Invest/ IPO/ ASBA-IPO optionĀ
- Check the IPO History for allotment status
- Once the allotment is declared, check the allotment statusĀ
Other key methods for ASBA IPO allotment status check:
1. Registrarās website (KFintech, MUFG Intime, Bigshare, Cameo Corporate)
- Visit the registrar mentioned in the IPO prospectus.
- Select the IPO name you applied for from the list
- Either enter PAN No, Application ID, DP/Client ID, or Account No / IFSC to check the allotment.
- After entering, click on the submit button to check the IPO allotment.
2. Stock Exchanges WebsiteĀ
- Visit the official stock exchange websites of BSE and NSE
- Enter required details like company name, PAN no, Application no
- Click on submit to check the IPO allotment statusĀ
3. IPO Broker Platforms (Groww, Zerodha, Angel One, Upstox)
- Open IPO broker platform
- Click on IPO
- Go to the Your Application section
- Click on the IPO for which you want to check its allotment
- Check the Application Status, which will show either Alloted, Not Alloted or Pending status
