Question

    ASBA is an important mechanism in the IPO process to prevent refunding in case of unsuccessful allotment. What is the full form of ASBA?

    A Account started by blocked amount Correct Answer Incorrect Answer
    B Account Stopped by Blocked Amount Correct Answer Incorrect Answer
    C Application Supported by Blocked Amount Correct Answer Incorrect Answer
    D Application Supported by Bulk Amount Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Applications Supported by Blocked Amount (ASBA) is a method developed by SEBI to block the funds for Initial Public Offer (IPO), Rights issue, Follow-on Public Offer (FPO) etc., applications. In ASBA, an IPO applicant's bank account doesn't get debited until they receive the allotment of shares

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