ASBA IPO: Easy 5 Step Process

ASBA IPO: Easy 5 Step Process

By Bansi Shah April 29, 2026

The process of applying for an IPO used to be very lengthy with paper cheques. This was, however, changed in 2008 when India introduced a new system. This system is called ASBA. 

ASBA full form is Application Supported by Blocked Amount. ASBA IPO is now the standard way to bid for shares for all types of investors, such as a small retail investor or a big institutional buyer. 

What is ASBA?

ASBA IPO is a smart application payment method. As the ASBA full form suggests, it enables your bank to freeze the money needed in your account. You give permission to a Self-Certified Syndicate Bank (SCSB) to do this. The funds are not removed from your account at once. The money does not leave your account immediately.

In case the company issues you the shares, the bank withdraws the money. This is called an allotment. The money is released by the bank in case you do not receive any of the shares. And then you can spend your money as usual again. This occurs during the final day of the allotment process.

Learn: IPO Meaning

Why Investors Prefer ASBA IPO

The ASBA IPO route is the easiest to bid. It offers several benefits:

  • The funds remain in your bank account.
  • You still get interest on the amount you are blocking.
  • You do not have to wait till you receive refund cheques in case you do not get shares.
  • It is a quicker way of doing things compared to physical demand drafts.
  • There is no need to approve a separate mandate like in the UPI method.

How to Apply for an IPO Using ASBA

There are two application methods available with ASBA IPO. You can do it either at home or by going to a bank.

Applying Online (Net Banking)

This is the fastest method. Most banks offer this through their net banking portals.

  • Log in to your net banking account and locate the sections of the “Investments” or “IPO”.
  • Choose the active IPO you would like to purchase.
  • Fill in your basic details. You need your Name, PAN number and Demat account details. Register these details in case it is the first time. Most banks save this for future use.
  • Enter your bid details. You will have to state the number of shares and the price.
  • Verify the application using an OTP if your bank asks for it. Submit the form to block the funds.

Applying Offline (Physical Form)

Some people prefer doing things manually. You can submit a paper form at your bank branch.

  • Get the ASBA IPO e-form. It is available for the application on the IPO INDEX website. You can also download blank forms from NSE/BSE website. Your broker can also provide this.
  • Write your personal details, such as Name and Address. Please enter your PAN and Demat account number. Specify the amount of your bid and price. Select your category, e.g. Retail or NII.
  • Mention your bank account number where the money should be blocked.
  • Sign the form and deposit it in one of the branches of an SCSB.
  • Keep the acknowledgement slip as proof of your application.

Read in detail: IPO Application

The ASBA e-Form

The electronic version of the paper form is the e-Form. The IPO ASBA e-form download option is available on the official websites of the stock exchanges NSE/BSE.

  • BSE Website: You can download blank forms here.
  • NSE Website: This site can be of great use. It allows you to download a pre-filled ASBA e-form. First, you have to create a user ID. After you save your PAN and bank details, they are automatically filled in the system. All you have to do is print it and sign it. This eliminates errors in writing long account numbers.

Form Colours: Resident Indians tend to use a white form. If the Foreign Portfolio Investors (FPIs) wish to take their money to their home country, they use a blue form.

Get the ASBA IPO e-form IPO INDEX now.

ASBA vs UPI: Which one do you prefer?

Both systems block money in your account. However, they work differently.

FeatureASBAUPI
Tool NeededAny computer or bank visitSmartphone with UPI app
ApprovalImmediate after submissionNeeds a separate mandate approval
MinorsPossible through net bankingNot possible as minors lack UPI IDs
LimitsAvailable for all categoriesOnly for individuals up to 5 lakhs
Pre-IPONot possiblePossible with some brokers

ASBA is highly reliable for any kind of investor. It is the only option if you want to apply for a child’s account or if you are investing more than 5 lakhs. It remains the Indian IPO market leader.

Conclusion: Important Rules, Limits, Fees and Timing

There are some limits that you should follow when using ASBA IPO:

  • Bank Account: You need to have an account with a bank that supports ASBA. These are called SCSBs.
  • Bids: The maximum number of price bids you can do in a single application is 3.
  • One Account Rule: You are not allowed to submit multiple applications using the same bank account or PAN.
  • None of the Withdrawal: Large investors such as QIBs and NIIs are not allowed to withdraw their bids after placing the bids.
  • Mandatory Items: You are not allowed to apply without a valid PAN card and a Demat account.
  • Third-Party Rule: Before, you could apply for up to 5 family members on a single bank account. This stopped on May 1, 2022. The applicant and bank account holder should now be one and the same.

The ASBA IPO facility is free of cost. Banks do not impose charges for blocking the money. Nevertheless, you must follow the timeline.

  • Opening Time: The first day is generally 10 AM.
  • Closing Time: Last day typically 5 PM.
  • Bank Cut-off: Lots of banks stop accepting applications by 2 PM or 3 PM on the final day. Always check your specific bank’s deadline.

Frequently Asked Questions

8 FAQs
What is ASBA full form?

ASBA full form is Application Supported by Blocked Amount.

How to get ASBA e-form on NSE website?

You can get the ASBA e-form for applying through the National Stock Exchange (NSE) in a few ways:

  1. NSE Website: Visit the official NSE website. They offer a great feature where you can create a user ID, save your basic details (like PAN and bank info), and go on with pre-filled ASBA NSE form download. This helps prevent mistakes when writing account numbers.
  2. Stockbroker: Your stockbroker can also provide you with the physical or electronic ASBA form.
  3. Bank Branch: The paper forms are available at the branches of Self-Certified Syndicate Banks (SCSBs) for offline application.
What is ASBA IPO?

ASBA fullform is Application Supported by Blocked Amount. In an Initial Public Offering (IPO), ASBA is the mandatory and standard method for bidding for shares. It is a system where the money for the application is simply blocked in your bank account, instead of being immediately transferred out. The funds stay in your account and earn interest until the shares are officially allotted. The money is only withdrawn if you receive the shares; otherwise, the block is removed, and the money is released to you.

How to apply for IPO via ASBA online?

Applying online is the fastest method, usually done through your bank’s net banking portal:

  1. Log in to your net banking account.
  2. Look for the ‘Investments’ or ‘IPO’ section.
  3. Choose the active IPO you wish to apply for.
  4. Fill in your basic details, including your Name, PAN, and Demat account number.
  5. Enter the number of shares you want and the price (your bid details).
  6. Complete any verification (like an OTP) and submit the form. Your bank will then block the required amount.
Which banks have an ASBA facility?

The ASBA facility is available through banks that are officially authorized to offer this service. These banks are known as Self-Certified Syndicate Banks (SCSBs). Most major public and private sector banks in India are registered as SCSBs. It is advisable to check the official list of SCSBs on the SEBI website or confirm with your specific bank before applying.

Which is better for IPO, ASBA or UPI?

Both ASBA and UPI block the money in your account for IPO application, but ASBA is generally considered more flexible and reliable for all investors:

  • ASBA IPO is available for all investor categories (small retail and big institutional buyers) and for applications of any amount. It is the only option for applications exceeding ₹5 lakhs. It is also necessary if you are applying for a child’s account.
  • UPI is only available for individual investors and is limited to applications of up to ₹5 lakhs. It requires a separate approval of a mandate after the application, which can sometimes fail.
What are the disadvantages of ASBA?

While ASBA is highly advantageous, it has a few minor drawbacks:

  1. Bank Dependency: You must have an account with a Self-Certified Syndicate Bank (SCSB) to use the facility.
  2. Online Setup: If you choose to apply online, you must have an active net banking facility with your bank.
  3. No Withdrawal for Large Investors: Large investors (like QIBs and NIIs) cannot withdraw their bids once they are placed.
What is ASBA IPO process?

The ASBA IPO process is straightforward:

  1. Application: The investor submits an application to the bank (SCSB) either online via net banking or offline using a physical ASBA e-form.
  2. Blocking Funds: The bank blocks the necessary amount for the IPO application in the investor’s bank account. The money remains in the account and continues to earn interest.
  3. Allotment: Once the IPO allotment is finalized:
    • If shares are received: The bank withdraws the money for the allotted shares and transfers them to the company.
    • If no shares are received: The blocked amount is immediately released back to the investor’s available balance, and they can spend the money.
Sanjay Bambhaniya
Bansi Shah
Writer
Bansi is your guide to IPOs and the Indian stock market. As a professional in investments, she simplifies and writes knowledge base and news articles to help all investors better understand complex financial topics.
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