ASBA
Also called Application supported by blocked amount
Application supported by blocked amount: your IPO money is blocked in your bank, not debited, until allotment.
ASBA means your IPO money is blocked, not taken. When you bid in an IPO, your bank holds the amount in your account. If you’re allotted shares, only that amount is debited. If you’re not, the block is lifted. For bids up to 5 lakh rupees, you approve the block with a UPI mandate. See our IPO explainer.
Questions people ask
What is the full form of ASBA?
ASBA stands for application supported by blocked amount. When you apply for an IPO, the bid amount is blocked in your bank account instead of being taken out.
Can I spend blocked IPO money?
No. It stays in your account, so it is still your money, but you can't spend it until the block is lifted or the amount is debited for allotted shares.
Can I use UPI for an IPO application?
Yes. Individuals bidding up to 5 lakh rupees approve the block with a UPI mandate, under SEBI rules for issues opening from 1 May 2022. Check the current limit.
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