Practicing Success
Practicing Success
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| How does ASBA work when an investor applies for IPO or Rights Issue securities? |
It refunds the application amount back to the investor's account It transfers the application amount to a separate ASBA account It places a lien on the investor's account, blocking the application amount It immediately debits the application amount from the investor's account |
| It places a lien on the investor's account, blocking the application amount |
| The ASBA process works by temporarily reserving the required funds in the investor's account through the placement of a lien. This ensures that the funds are available for allotment if the investor is granted securities while preventing immediate debit or unrestricted use of the funds during the application process. |
