What are the basic requirements to apply in an IPO using the ASBA process?
- Asked By
- Updated On:07-Mar-2021
- Replies:1
Short Answer
ASBA or Application Supported by Blocked Amount is an alternative payment method to apply or bid for an IPO. However, it is currently available to only the Retail Individual Investors and you also need to fulfill certain requirements for the same.
Detailed Answer
ASBA Process is an alternative payment method that makes the listing and refund process efficient for the investors. But do you know what are the basic requirements to apply in an IPO using the ASBA process? If you are looking to find the answer for the same, then you are in the right place. Here in this article, we are going to discuss the basic requirements to apply in an IPO using the ASBA process. Let us get it started.
Basic Requirements to apply in an IPO using ASBA process
Below you can find some of the basic requirements to apply for an IPO through the ASBA payment method.
- Currency, retail individual investors can opt for the ASBA payment method to apply or bid for an IPO.
- The investor's bank should be a Self Certified Syndicate Bank, also known as SCSBs. The list containing the name of all the SCSBs are present in the official website of SEBI.
- Retail individual investors can bid at the cut-off price. Once they submit their bids they can't undo or modify them. Investors are only allowed to withdraw their application before the final allotment.
- The total bid amount or the applicable amount for an IPO will remain locked until the final allotment is complete. Investors cannot withdraw their money in this lock-in period.
Hence, ASBA is currently available for the retail individual investors. To apply or bid for an IPO through this alternative payment method requires you to have bank account with one of the Self Certified Syndicate Bank, also known as SCSBs.
ASBA to apply in IPO
So these are some of the basic requirements to apply in an IPO using the ASBA process. It is important to understand all these requirements well before making any bid by using the ASBA payment method. If you any other queries related to the ASBA payment method of IPO application, then feel free to get in touch with us and ask your doubts in the comment section down below.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
ASBA stands for Applications Supported by Blocked Amount, which is an alternative payment method to apply for an IPO. Let's go through some more details on it.
Yes, you can apply for an IPO application under a minor or HUF's name, provided they have different PAN card numbers. Minors can open a Demat account with their parent’s PAN Card and bank account.
If you are a Zerodha customer, you can apply for IPO online through Zerodha Console (Zerodha Back-office). The process for applying an IPO process has been explained in detail above. Here are few other answers to important queries that you may want to learn.
Yes, you can apply for an IPO application for your family and friends through your savings bank account details. However, keep in mind that only five applications can be filled with the same bank account details.
Undertaking fundamental analysis and proper research is essential before investing in any particular stock. Apart from this, you should also consider asking seven key questions like 'What does the company do', 'How is it placed among its peers', 'How is the management of the company', etc before investing in it.
There is no provision for users to apply for an IPO through a current account. They would have to choose a savings account to get an IPO applciation processed further.
Yes, cryptocurrency can be converted into cash. Cryptocurrency is a highly volatile digital currency whose price fluctuates dramatically. It is, however, quite simple to incorporate it into cash.
But, before doing so, specific things must be understood so that the true value of the currency is not forgotten when cryptocurrency is converted into cash.
While applying for an IPO a person either uses the UPI or ASBA facility for the payment and in both the process the total amount of money remains blocked by the bank under a "Mandate" until the allotment process is finalized hence the amount remains in the bank account of the investor and only gets debited if he/she receives the allotment of the shares.
An IPO or Initial Public Offering is where for the first time an earlier unlisted company sells new or existing securities and offers them to the public in the primary market.
IPO's (Initial Public Offering) is very popular right now. Therefore getting an allotment is not easy. There are two different ways in which you can find out your allotment status. These are through the BSE India website and the company Registrar's website. Know the details and another bonus way of finding out allotment status here.