What is ASBA?

ASBA stands for Applications Supported by Blocked Amount. ASBA is an application containing an authorisation to block the application money in the bank account, for subscribing to an issue (such as an IPO). If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalised, or the issue is withdrawn/failed.

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