ASBA can be used for initial and follow-on public offers (IPO & EPO), Rights Issues, Debt Issues and Mutual Funds. Under ASBA, funds will continue earn interest durring the application processing period. Bank will mark a lien on the deposit account of the investor to the extent of the application money. Lien will be removed imndiately after finalization of the basis of allotment. if bid is successful, the shares allotted will be transferred to the applicant's Demat account.
An Investor can apply through ASBA, provided he/she:
- is from any of the approved category eligible to apply in IPO as per SEBI guidelines.
- is maintaining a Saving Bank or Current Account with any bank.
- is having Demat account eith any of the DP along with Permanent Account Number (PAN).
- has sufficient clear credit balance in his/her Saving Bank or current account for applicaton money.
- A Retail Individual Investor can also modify, revise or delete the bid within bidding period.
- ALL other categories cannot withdraw the application and can modify only upwardly.
- An Inverstor can make 5 applications from a single deposit account.