The facility of Application Supported by Blocked Amount (ASBA) introduced to protect the interest of investors for faster refund. SEBI has provided additional channels for making subscription and/or call money in respect

Application Supported by Blocked Amount (ASBA) is an application by an investor containing an authorization 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 finalized. SEBI, in its endeavour to protect investors' interest and reduce investor grievances relating to refund, introduced ASBA as the sole payment mechanism in the IPO and Rights issues. Considering that payment through ASBA mechanism is investor friendly and enables faster completion of the process, it has been decided by the SEBI vide its circular dated 8th December, 2020 to introduce additional payment mechanism (i.e. ASBA, etc.) for making subscription and/or payment of calls in respect of partly paid specified securities through self-certified syndicate banks (SCSBs) and intermediaries such as Trading Members/ Brokers - having three in one type account and Registrar and Transfer agents (RTA). For the purpose of making payment of balance money for calls in respect of partly paid specified securities, the additional channels are tabulated below: Channel I Channel II Channel III Online ASBA: Through an online portal of the SCSB. The SCSBs shall send the application to RTA and block funds in shareholders account Physical ASBA: Physically at the branch of a SCSB. The SCSBs shall send the application to RTA and block funds in shareholders account. Additional Online mode: using the facility of linked online trading, demat and bank account (3-in-1 type accounts), provided by some of the brokers. The payment period for payment of balance money in Calls shall be kept open for fifteen days.