Introduced by SEBI, ASBA (Applications Supported by Blocked Amount) revolutionized the Indian IPO application landscape by eliminating physical refund cheques and upfront cash deductions.
1. What is ASBA?
Under ASBA, when you apply for an IPO, the application money is not debited from your bank account. Instead, the specific bid amount is simply marked with a lien / block. The funds remain in your savings account and continue earning normal bank savings interest.
2. How Money Remains Blocked (Earning Interest)
Since your money never leaves your bank account until the registrar confirms your allotment, you never forfeit daily savings interest. If you are allotted shares, the exact value of allotted shares is debited on the allotment finalization date.
Allotment Verification
Confirm whether your ASBA application received shares using your PAN on the bank mandate and IPO allotment status portal.
3. Checking ASBA Status via Bank Net Banking
Log into your bank portal (SBI, HDFC, ICICI, Kotak) and check your Lien Status / Hold Balance under the Accounts or IPO menu. If the hold balance drops to zero and a corresponding debit appears, you have won an allotment.
4. What Happens When You Don't Get Allotment?
If you receive no shares in the lottery, the registrar sends an unblock instruction to your bank, which removes the lien and frees your money immediately.
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