ASBA (Application Supported by Blocked Amount)

Mon, 11 May 2026 00:00:00 +0000

ASBA (Application Supported by Blocked Amount) is the SEBI-mandated payment mechanism for Initial Public Offering (IPO) and other public issue applications in India, under which the application amount is blocked (held as a lien) in the applicant’s own bank account rather than debited and transferred to the issuer. The blocked amount earns savings interest throughout the subscription and allotment period; only the portion corresponding to the value of allotted shares is ultimately debited. Unsuccessful applications result in immediate and automatic release of the lien, with no refund delay. ASBA was introduced by SEBI by circular dated 30 July 2008, effective for public issues opening on or after 1 September 2008, and was made the sole route for retail investors in book-built issues from 1 January 2016.

Application Supported by Blocked Amount on WebNotes

ASBA (Application Supported by Blocked Amount)