What do you understand by the term ASBA ? Is it mandatory for investor to submit application for "Right Issue" through ASBA?

ASBA stands for "Application supported by Blocked Amount" which is a mechanism whereby an application is made for subscribing to a public issue or rights issue, along with an authorization to self-certified syndicate bank to block the application money in a bank account. Under ASBA process instead of moving the application money from the bank account of applicant in an IPO to an escrow account, same is blocked in applicant's own bank account and if the shares are allotted to him in IPO, same is released to the issuer company. The concept of ASBA was introduced by SEBI through the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (now SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018). The advantage is that until the money moves out of the investor's account, the investor continues to earn interest, which was not the case earlier since the money used to move out of the investor's account to that of the issuer. SEBI vide its circular dated January 22, 2020 made it mandatory that Application for a rights issue shall be made using ASBA facility.