Pay for IPO Shares only on Allotment


Faced with the endless wait for refund of cheques for the IPOs applied and to make it more investor friendly and to make the share market more popular among the people, Securities and Exchange Board of India (SEBI) has introduced a scheme known as ASBA where the account gets debited only after basis of allotment is finalized and the investor gets allotment of shares in the IPO. The Scheme if known as ASBA or Application Supported by Blocked Amount.

Pay for IPO Shares only on Allotment


Faced with the endless wait for refund of cheques for the IPOs applied and to make it more investor friendly and to make the share market more popular among the people, Securities and Exchange Board of India (SEBI) has introduced a scheme known as ASBA where the account gets debited only after basis of allotment is finalized and the investor gets allotment of shares in the IPO. The Scheme if known as ASBA or Application Supported by Blocked Amount. Under ASBA Scheme, the investor has to authorize his Bank to block money in his bank account for the shares applied for in the IPO. The Scheme ensures debiting only on actual allotment of shares and earning the interest until the account is debited with the IPO amount.

Formalities for ASBA application for IPO



Under the scheme known as ASBA, SEBI has approved certain banks what is known as "Self Certified Syndicate Banks", for blocking investors account with the amount until shares are finalized and allotted under the IPO. SEBI has approved 35 banks who are authorized and approved to act as Self Certified Syndicate Bank.

List of Self Certified Syndicate Banks (SCSB)

The list of self certified syndicate bank is given below:

Axis Bank Ltd
State Bank of Hyderabad
Axis Bank Ltd
State Bank of Hyderabad
Corporation Bank
State Bank of Travencore
IDBI Bank Ltd.
State Bank of Bikaner and Jaipur
YES Bank Ltd.
Punjab National Bank
Deutsche Bank
Union Bank of India
HDFC Bank Ltd.
Bank of Baroda
ICICI Bank Ltd
Vijaya Bank
Bank of Maharashtra
State Bank of India
Andhra Bank
HSBC Ltd.
Kotak Mahindra Bank Ltd.
Bank of India
CITI Bank
IndusInd Bank
Allahabad Bank
Karur Vysya Bank Ltd.
The Federal Bank
Indian Bank
Central Bank of India
Oriental Bank of Commerce
Standard Chartered Bank
J P Morgan Chase Bank, N.A.
Nutan Nagarik Sahakari Bank Ltd.
UCO Bank
Canara Bank
United Bank of India
Syndicate Bank

The list of the banks is being updated by SEBI periodically For the list of banks and branches under SCSB, Please click here . The websites of the banks can also be accessed from SEBI, BSE or NSE.

ASBA requirements

For filling up the ASBA for new issues IPO, you have to submit PAN Number, Demat account Number, Bid quantity, Bid Price, Depositary Participant

Under the scheme the amount blocked by the investor, cannot be used for any other purpose and the money can be utilized by the company only when it is transferred to their account on actual allotment. In case of partial allotment of shares, only the amojunt for the shares allotted will go the company offering shares and the amount for the unallocated shares continue to remain with the investors.


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