Applying for ASBA

ASBA applications can be submitted both online and offline. The following are some of the steps to apply for ASBA.

Online method:

1. Go to the “IPO Application” tab in your NetBanking account settings. You can make up to three bids and specify which IPO you’re applying for.

2. Enter your Demat account information, make your purchases, and confirm them.

3. The bid amount is held in your bank account until the allotment is finalized. However, interest payments will be made to you.

Offline Method:

1. You can get a copy of the ASBA form by visiting the websites of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2. You need to complete the form with the necessary information and submit it, along with a photocopy of the required identifying documentation, to one of the Self-certified Syndicate Banks.

3. When you hand in the application, the bank shall immediately notify the stock exchange of the application details while simultaneously freezing the minimum amount required to place a bid in your bank account.

4. You can check the status of your application on either the BSE or the NSE website.

However, it is important to keep in mind that the likelihood of obtaining an allotment is the same for each of the applicants, regardless of whether the application was submitted through ASBA or through a non-ASBA channel. The ASBA method does not ensure an allotment.

To conclude, ASBA simplifies the application procedure for securities offerings, reduces the financial risks for investors, and improves allotment efficiency. It has gained popularity due to its convenience, openness, and investor-friendly traits. It ensures that only the required quantity of funds is blocked and reduces the risk of non-allotment refunds. The process is governed and monitored to ensure transparency, exactness, and investor security.