Applying through ASBA facility has the following advantages:

• The investor need not pay the application money by cheque rather the investor submits ASBA which accompanies an authorization to block the bank account to the extent of the application money.
• The investor does not have to bother about refunds, as in ASBA only that much money to the extent required for allotment of securities, is taken from the bank account only when his application is selected for allotment after the basis of allotment is finalized.
• The investor continues to earn interest on the application money as the same remains in the bank account, which is not the case in other modes of payment.
• The application form is simpler.
• The investor deals with the known intermediary i.e. its own bank.

General Guidelines

• From 01.01.2016, SEBI has made compulsory that Investors applying in a Public Issue shall use only ASBA.
• ASBA can be submitted to the SCSB with which the investor is holding the bank account.
• The entire bank account will not be blocked. Only the amount to the extent of application money authorized in the ASBA will be blocked in the bank account. The balance money, if any, in the account can still be used for other purposes.
• Investor can either fill up the physical ASBA form available with SCSB or available in BSE/NSE website and submit the same to the SCSB or apply electronically/online through the Internet Banking or PNB ONE (Mobile Banking) facility.
• Investors need not necessarily have their DP (Demat) account with the SCSB, where they are submitting the ASBA form.
• Investor can withdraw ASBA bids.
  i. During the bidding period he can approach the same bank to which he had submitted the ASBA and request for withdrawal through a duly signed letter citing your application number, TRS number, if any.
  ii. After the bid closure period, he may send withdrawal request to the Registrars before the finalization of basis of allotment, who will cancel the bid and instruct SCSB to unblock the application money in the bank account after the finalization of basis of allotment.
• If the withdrawal is made during the bidding period, the SCSB deletes the bid and unblocks the application money in the bank account. If the withdrawal is made after the bid closure date, the SCSB will unblock the application money only after getting appropriate instruction from the Registrar, which is after the finalization of basis of allotment in the issue.