Applications Supported by Blocked Amount (ASBA) is a process develope…

NCERT (2026-27 edition):
Applications Supported by Blocked Amount (ASBA) – “… ASBA is a process developed by Securities and Exchange Board of India (SEBI)to apply for subscribing to IPOs and Rights Issue etc. of securities. Under the method, the applicant authorises the bank to block the bank account for the application money, for subscribing the issue. The Bank debits the applicant’s account with application money only if he / she is allotted securities (Shares / Debentures etc.) for the amount payable on allotted securities. In case, securities are not allotted, the bank removes the block (lien) on the amount.”