ASBA for mutual fund subscriptions

Tue, 19 May 2026 00:00:00 +0000

ASBA (Application Supported by Blocked Amount) is an SBI-pioneered framework, primarily used for IPO applications, where the application amount is blocked in the investor’s bank account rather than transferred to the issuer until allotment is confirmed. In mutual funds, ASBA has limited application, used primarily for some NFO subscriptions where SEBI permits.

Framework

IPO context (primary use)

Investor applies for IPO via ASBA.
Amount blocked in bank account.
On allotment: amount debited for allotted shares.
On non-allotment: block released.

Mutual fund NFO context

For NFO subscriptions, ASBA can be used:

Asba-For on WebNotes

ASBA for mutual fund subscriptions

Framework

IPO context (primary use)

Mutual fund NFO context