📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    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

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question