Application Supported by Blocked Amount

ASBA (Application Supported by Blocked Amount) is a process developed by stock market regulator SEBI for applying IPO (Initial Public Offer). ASBA process facilitates investors to bid for IPOs at a fixed price, with option either to apply through SCSB’s (Self Certified Syndicate Bank) like Equitas Small Finance Bank in which investors have bank accounts or through a Syndicate Member.

Customer can conveniently apply for IPO online through IB/MB and also enjoy interest on the blocked amount till the date of final allotment of shares.

ESFB Customers shall apply for IPO through Internet Banking (IB), Mobile Banking (MB), UPI Channels along with supporting banking facility through Syndicate Members/ Brokers.

How can you use ASBA facility?

An Investor who applies through ASBA is known as ‘ASBA Investors’ - ASBA investors must provide accurate information in the application regarding

  • PAN card number
  • DP ID (depository participant identification) number
  • Client identification number or the Clients ID from your broker’s account
  • Bid Quantity
  • Bank account number

Benefits of ASBA Facility

  • The amount remains blocked in your bank account for the IPO application.
  • There is no loss of interest. The account continues to earn interest on the blocked funds. The blocked fund is debited post allotment and then the interest stops on the debited part.
  • There is no need to wait for your refund cheques/ECS credits.
  • Bank will unblock the funds in case the application is rejected or there is no allotment or the issue is withdrawn. For this, the Bank will receive instructions from the registrar of the issue.
  • The blocked amount is considered while calculating Average Monthly Balance (AMB) in the account.
  • The application form is simple and easy to fill.
  • The applicant need not have to submit any physical documentation to avail of this facility.
  • This facility is absolutely free.

Blocking of Account

  • Client entire bank balance is not blocked, but only an amount equivalent to his/her application money is blocked in bank account. Balance amount can be used by client.

Modes of ASBA IPO Investments

  • Online ASBA over Internet/ Mobile Banking - Investor can use Equitas Internet/Mobile Banking to apply for IPO through digital mode. Investor needs to add the Demat A/c details as one time activity and then proceed to apply for available IPOs. Online ASBA is the most convenient mode of applying IPO without any physical application.
  • UPI ASBA for Retail Investors – Under UPI ASBA, Investor can submit the Bid Application along with UPI ID (linked with ESFB A/c) through the Broker, Depository Participants, RTA (called Intermediaries) who are authorised to accept the IPO application form. Once bids are accepted by the Exchange, Investor will receive an E-Mandate on UPI Registered Mobile Application for blocking the Funds. Investor needs to enter his UPI PIN & Funds will be blocked in ESFB A/c. Funds will be debited / unblocked automatically in case of allotment / non-allotment.
  • Offline applications acceptance – In this facility, Investor can download IPO application form from the website of stock exchange (NSE/BSE) and submit the same at any of the bank branches for bidding. This is also called Offline Direct ASBA. Kindly note that Equitas Small Finance Bank currently does not provide the ASBA service of accepting offline forms. Customers are requested to use only online channels of Internet and Mobile Banking for Direct ASBA facility.