What is Application Supported by Blocked Amount (ASBA)? How can I apply for an IPO through net banking ASBA?

Application Supported by Blocked Amount (ASBA) is a method through which you can block funds in your bank account. 

With regards to IPOs, it permits the bank to block funds as per the application amount in your (the applicant) bank account till the allotment process is completed. The funds are debited by the bank if you are allotted shares. If shares are not allotted/ partially allotted, funds are unblocked based on the extent of allotment.

Investors can place IPO applications through the net banking ASBA facility provided by the bank.

The following details will have to be entered in the application:
1. Your Demat ID- Your unique 16/8 digit identification number. 
2. Your Depository- NSDL/ CDSL 
3. Your Depository Participant (DP) Name- Geojit Financial Services Ltd. 

ASBA applications can be made:
  • Using your bank's net banking website or mobile app.
  • By visiting your bank branch- While the process remains the same as applying online, you will get additional assistance from the branch staff.

Net banking ASBA IPO application process:

Step 1. Log in to your net banking website or mobile app.

Step 2. Go to the online IPO application section.

Step 3. Select the IPO you wish to apply for from the list of open issues.

Step 4. Fill in your bid details. Select Category > Enter bid Quantity and Price

Step 5. Allocate the required funds. 

Step 6. Submit your IPO application.

Step 7. The bank will block the bid amount in your account (by marking a lien)

Step 8. The bank sends the application to the stock exchange, where it is verified and accepted. The application number is sent to the bank. You will be intimated once a bid is placed successfully. 

* IPO applications above Rs. 5 lakhs must be made through net banking ASBA.

* The cut-off price provision is not available for IPO applications made via net banking ASBA.

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