ASBA payment method is an optional choice for the IPO Application. In this case, the IPO bidding amount won’t go anywhere but stay within the investor’s account.
This ASBA payment method is completely for retail individual investors. The availability is exclusive through participatory banks. In this type of payment option, an investor won’t get any refund process technically.
In the Stock Market, an investor can use its training money quickly after the withdrawal of the amount. Then the money will be locked:
Purpose of IPO’s ASBA Payment Option
The purpose of the IPO’s ASBA Payment Option is to make everything simple and secure for investors.
The following list will tell its values:
- Lessen turn-around time for IPO stock listing.
- Fasten the refund process
- Withdraw money for allocated shares only.
- Reduces the burden of refund processes
- Easy and fast listing process.
Why Does Your ASBA Application Get Rejected?
These reasons could be possible to get rejection of the ASBA application:
- Invalid or incorrect DP ID / Client ID from the applicant.
- Mismatch of the PAN card number mentioned in the IPO application with the Demat account.
- A wrong number of Demat accounts.
- Inactive Demat account
- Presence of a non-accessed Demat for a long term.
- Non-acceptance of the UPI mandate
- Invalid UPI handle.
Procedures to Apply for ASBA
It is easy to fill up the ASBA IPO application form. This is the facility that an investor gains to apply for an IPO with the help of net banking.
The following processes are coming into action for filling out the ASBA IPO application form:
- Fill up the form online.
- Submit the form within the working period of the facility (starting from 10 AM till 5 PM).
- Check your ASBA IPO status for the allotment.
- Once allotted, you can apply, modify, or cancel the application anytime.
Is An Investor Eligible for IPO through ASBA Application?
Yes, an investor can apply for the ASBA IPO application within the working hours of the bank. In this case, SCSBs allocate and extend the facility for its clients.
Can Your Bank Account Get Blocked Through the ASBA Application?
No, the entire account won’t be blocked. However, the amount authorized in the ASBA will receive the blockage in the bank account.
Wrapping Up!
An investor gets plenty of options on a Stock Trading Website to secure investments. But, with SCSB, it gets much better.
Even though the bank has its SCSB listing, it still requires some abilities to process the IPO applications considering the payment option of ASBA.