Detail process flow for 'Applications supported by Blocked Amount (ASBA)' payment Option.

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1. Self Certified Syndicate Banks (SCSBs) accept retail individual investors bid for IPO Shares at Cut-Off price through internet banking or at certain designated branches.
2. Investor receives the acknowledgement from the bank along with the IPO Application Number.
3. Bank blocks the amount in investor's bank account for the IPO as applied and send the application information to the designated stock exchanges for that IPO. In case of insufficient amount in investor's bank account, the bank can reject the IPO application and do not sent the bidding to stock exchanges.
4. Bank keep the physical forms or electronic date (in case of online IPO Application) for specified period of time.
5. IPO Registrar receives the final bidding information from stock exchanges soon after issue get close. ASBA applications are processed along with the other IPO applications.
6. IPO Registrar validate the bids and rejects the application who doesn't match the application requirements.
7. Registrar complete the ‘Basis Of Allotment' and get it approved from stock exchanges.
8. Registrar sends request for money to SCSB's to transfer money to escrow public issue account.
9. Registrar receives the money and transfer the allocated shares to investors Demat Account.

SEBI Says:

Under ASBA facility, investors can apply in any public/ rights issues by using their bank account. Investor submits the ASBA form (available at the designated branches of the banks acting as SCSB) after filling the details like name of the applicant, PAN number, demat account number, bid quantity, bid price and other relevant details, to their banking branch by giving an instruction to block the amount in their account. In turn, the bank will upload the details of the application in the bidding platform. Investors shall ensure that the details that are filled in the ASBA form are correct otherwise the form is liable to be rejected.