Applications Supported by Blocked Amount (ASBA)
One of the easy ways to apply for IPO online/offline with banks is through ASBA Facility. It is an application facility provided by the bank, so one should have a bank account to avail this facility. In the facility, whenever you will apply for an IPO, you can apply through your bank.
If you make investments by ASBA, the funds are blocked in your account for the IPO. The amount leaves your bank-account solely in case you are allotted shares within the IPO. The funds are deducted from the investors bank account after the allotment of the shares to the extent of the allotted shares.
The subscription amount for the IPO is blocked as soon as you apply and cannot be used for any other purpose while your IPO application is still in process. You cannot use the blocked amount for any purpose. However, you can continue to earn interest in the blocked amount.
One can apply through ASBA via both Offline Method (By downloading and filling the form & submitting it at the Bank with requisite copies of ID proof) and Online Method (By Logging into the Netbanking account, filling the Demat & other details and confirming the order details)
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