ASBA - Application Supported by Blocked Amount
ASBA is an application containing authorisation to block the application money in the bank account, for subscribing to an issue.
Under ASBA application, money will be debited from the bank account of the applicant only if his application is selected for allotment and that also to the extent of amount corresponding to allotted quantity.
- Simple & convenient facility of investing in IPO
- Earn interest on Saving account
- No need for payment through Cheque
- Instant release / unblocking of funds after allotment / non-allotment of shares.
- All investors except Qualified Institutional Buyers (QIBs) are eligible to apply through ASBA in public issues.
- The investor holding Savings/Current Account can apply for IPO through ASBA.
- The investor should have a Demat account with any Depository Participant of either CDSL or NSDL.
- The investor should have PAN.
- Under ASBA Mode from a single bank account for a particular IPO not more than 5 applications can be made.
- Details like TJSB Bank account number, PAN Number, Demat account , Bid quantity etc. need to be filled in the ASBA application form of the IPO and submitted to the branch.
- On submission of the form, an acknowledgment slip shall be handed over to investor. The slip needs to be retained for any future information or query.
- Subsequently, bank will block the amount in the specified TJSB Bank account for the IPO as applied and send the application information to the designated stock exchanges for that IPO.
- Customer shall be responsible for maintaining sufficient funds equivalent to the IPO application amount in his/her account and for furnishing correct & accurate details in the ASBA application form of the IPO.
- In case of insufficient amount in the bank account or any discrepancy in the application form, the bank shall have to reject the IPO application and shall not be able to send the bidding to the stock exchange.
For further details, Please visit our nearest branch.