What does ASBA stand for in the context of securities applications?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Application Supported by Blocked Amount.
ASBA stands for Application Supported by Blocked Amount.
Initial Public Offers (IPOs) and Rights Issues offer opportunities to invest in securities such as Shares, Debentures, and other Financial Instruments. Subscribing to these offerings involves payment of Application Money through various banking instruments like Cheque, Pay order/Draft, Debit to Bank Account, or the Application Supported Blocked Amount (ASBA) method.