SCSB on WebNotes

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.

Bank ASBA via NetBanking for IPO applications in India

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

Bank ASBA via NetBanking is the method of applying for an Initial Public Offering (IPO) directly through the Internet banking portal of a Self Certified Syndicate Bank (SCSB), bypassing a stockbroker entirely. Under this route, the applicant logs into the bank’s NetBanking interface, navigates to the IPO or public issues section, enters bid details (issuer, quantity, price or cut-off), and the bank immediately blocks the application amount in the applicant’s bank account under the ASBA (Application Supported by Blocked Amount) mechanism. No stockbroker or UPI ID is required; the bank acts as both the SCSB and the applicant’s account custodian.

Self Certified Syndicate Bank (SCSB)

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

A Self Certified Syndicate Bank (SCSB) is a bank that has been authorised by the Securities and Exchange Board of India (SEBI) to act as a collecting bank for applications made through the Application Supported by Blocked Amount (ASBA) facility in public issues. The SCSB receives the ASBA application from a retail or high-net-worth investor, verifies the application, blocks the application amount in the applicant’s designated bank account, transmits the application data to the stock exchange, and manages the release or transfer of blocked funds after the allotment outcome is determined.