Write short notes on the following: Application Supported by Blocked Amount (ASBA)

Application Supported by Blocked Amount (ASBA) ASBA means "Application Supported by Blocked Amount". ASBA is an application by an investor containing an authorisation to Self-Certified Syndicate Bank (SCSB) to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalised. SEBI has reviewed the processing of Application Supported by Blocked Amount (ASBA) applications in the Public Issues by market intermediaries and Self-Certified Syndicate Banks (SCSBs) as a part of the continuing efforts to further streamline the bidding process and to ensure the orderly development of securities market. SEBI vide its circular dated May 30, 2022 has provided that the ASBA applications in Public Issues shall be processed only after the application monies are blocked in the investor's bank accounts. Accordingly, all intermediaries / market infrastructure institutions are advised by SEBI to ensure that appropriate systemic and procedural arrangements are made within three months from the date of issuance of this circular. Further provided that the Stock Exchanges shall accept the ASBA applications in their electronic book building platform only with a mandatory confirmation on the application monies blocked.