ASBA, or ‘Application Supported by Blocked
Amount’, does not require investors to furnish demand drafts or cheques
that were earlier needed when applying for IPO
shares. Under this option, investors can apply through banks, which
will hold a lien on investor deposits – that is, the money stays in the
bank account until the issues are allotted. There are two benefits to this process. First, the usual problems
associated with refunds are avoided. Second, the ASBA funds continue to
earn interest even during the application process, if they are held in
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