Payment in IPO FAQs

In an IPO what is ASBA payment method?

The Applications Supported By Blocked Amount (ASBA Process) was introduced in July 2008. It is an alternative payment method for IPO applications where the IPO bidding amounts remain in investors account but are blocked by the bank until the allotment.

This is an additional method of payment that is only for retail investors via participatory banks (SCSB).

This new payment option was added to speed up the refund process and reduce the turnaround time for IPO Stock Listing.

This type of payment option does not allow for refunds. Only the money required to allocate shares is taken from the investor's account. The remaining money can be used by the investor as soon as the required funds are withdrawn.

ASBA will help companies to list their shares without completing the refund process.

ICICIDirect Says

ASBA stands to represent "Applications Supported By Blocked Accounts". Bidding is done by blocking the account of investors to the amount of the bid amount. The account can then be debited at the time the allotment occurs. This facility is offered by ICICIDirect, in association with ICICI Bank Limited.

The bid amount is deducted from other payment options when an investor submits a bid to the stock exchanges. The ASBA process will debit your bank account until the successful allotment is made. The amount will be held in an investor's bank account until such time as it is allotted.
Once placed bids cannot be changed, but they may be withdrawn during issue open for subscription. Once the big issue is cancelled, the money becomes unlocked and accessible to the investor.


ASBA refers to an application that authorizes the bank to stop the application money from being deposited in the account. This is for the purpose of subscribing or purchasing an issue. ASBA is an application that allows investors to apply for a subscription. The applicant's application money will be deducted from the account if the application is approved or withdrawn.

What are the essential requirements to apply through ASBA payment method?

Who are SCSBs(Self certified syndicate banks)and How do I find out if my bank allows me to apply for an IPO through the ASBA payment method?

List down the process flow foe ASBA payment method.

I don't have a SCSBs bank account listed on SEBI Website. Can I still apply for IPO's with ASBA payment option for IPO?

If customers choose ASBA IPO Payment Options, will banks charge additional fees?

What is the bank's requirement to have money in customers accounts in order to lock ASBA payment option?

using ASBA method can an investor apply in lower price band?

Can an investor withdraw or cancel the IPO application (or bid) submitted through ASBA payment option via SCSB?

If I apply through 'Self Certified Syndicate Bank,' my money will be blocked, but it is in my savings account. Will I receive interest for that period of time?

How can I select the ASBA payment option when applying for an IPO Stocks through online portals or ICICI Direct?

At the time of applying for an IPO,do I need to pay any brokerage?