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Volume : III, Issue : IV, May - 2013 APPLICATION SUPPORTED BY BLOCKED AMOUNT (ASBA) – A BIRD'S EYE VIEW MALLIKARJUN BALI AND S. B. KAMASHETTY Published By : Laxmi Book Publication Abstract : The market regulator (SEBI) has introduced, vide its circular dated July 30,
2008, a new mode called Application Supported by Blocked Amount (ASBA) for
submitting bid for Initial Public Offer (IPOs), Follow-on Public Offer (FPOs) and Right
Issue (RIs). With the introduction of this mode, the Retail investors have an option to
submit bid either through existing mode or through this new mode. Under the
conventional mode, retail investors have to pay the application money while submitting
bid. However, under this new mechanism, the investor need not pay application amount
upfront, where as, the banker simply blocks the application amount in investors account.
The new move will enable the investors to earn interest on the money so blocked besides
making the issue process more efficient and less time consuming. Keywords : Article : Cite This Article : MALLIKARJUN BALI AND S. B. KAMASHETTY, (2013). APPLICATION SUPPORTED BY BLOCKED AMOUNT (ASBA) – A BIRD'S EYE VIEW. Indian Streams Research Journal, Vol. III, Issue. IV, http://oldisrj.lbp.world/UploadedData/2410.pdf References : - Business world
- Various issues of The Economic Times news paper
- Various issues of The Business Line news paper
- Various issues of Financial Express
- Various issues of Business Standard
- www.sebi.gov.in
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