Payment in IPO FAQs

List down the process flow foe ASBA payment method.

  1. Self-certified Syndicate Banks accept individual retail investors to bid for IPO shares at Cut-Off prices through internet banking or at designated branches.
  2. The bank acknowledges the investor along with the IPO Application No.
  3. Bank will block the amount in the investor's account for the IPO and send the information to the appropriate stock exchanges for that IPO. If there is insufficient funds in the investor's account, the bank may reject the IPO application. In this case, they will not send the bidding information to the stock exchanges.
  4. The bank will keep the electronic dates (in case of an online IPO Application) and physical forms for a specified time.
  5. The final bidding information is received from stock exchanges by the IPO Registrar shortly after issue close. ASBA applications are considered along with other IPO applications.
  6. The bids are validated by the IPO Registrar and rejected applications that don't meet the requirements of the application are rejected.
  7. The Registrar must complete the "Basis of Allotment" and have it approved by stock exchanges.
  8. SCSB receives money request from Registrar to transfer funds to an escrow public-issue account.
  9. The money is transferred to the investors Demat Account by the Registrar.


Investors can use their bank account to apply for any public/rights issues under the ASBA facility. After filling in the ASBA form, which is available at designated branches of banks acting as SCSB, the investor sends it to their bank branch with instructions to block the amount. The bank will then upload the details of your application to the bidding platform. The ASBA form must be filled correctly by investors to avoid rejection.

In an IPO what is ASBA payment method?

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?

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?