How does ASBA work?

ASBA is a facility offered by SCSBs to block the application amount from the investor's bank account for subscribing to an IPO.

Steps to understand the working mechanism of ASBA

1. Investors apply online/offline through ASBA.
2. At the time of bidding, the respective intermediary verifies the details and blocks the fund in the investor's account.
3. The intermediary uploads the bid on the stock exchange ASBA system.
4. The registrar receives the aggregate final bid details from the stock exchange.
5. The registrar finalises the basis of allotment in consultation with the designated stock exchange of the issue.
6. In case of successful allotment, the blocked amount is debited from the investor's account with the required amount.
7. In case of non allotment or partial allotment, the Registrar shall initiate a refund process that will unblock the funds from the investor's account.