Applying for a Lower Price Band using ASBA Payment Method

An Online Trading Website gives you plenty of options. Apart from them, the ASBA payment method exists too. ASBA, also known as Application Supported by Blocked Amount, is an application special for investors who have the power to block funds. 

It may be the current or saving accounts of the investors. To subscribe to an issue, SCSBs should accept the request first. Then you will go under the verification radar. After everything goes fine, your accounts won’t receive money from the application. In short, ASBA is a blocker for investors from Online Stock Trading. 

Who Can Apply through ASBA?

Well, individual retail investor will have their chance to apply for ASBA. There is no such limit as any individual, employee, shareholder investor, or HUF can go for it. 

However, any person should not exceed the bid amount of Rs. 200,000/-.  Also, an investor can have some liberties like modifying, deleting, or revising the bid as per your demand within the bidding time. 

Absolute Pros of Applying through the ASBA Payment Method

  • An investor should not worry about paying the amount in a cheque in online trading. It is just an application that should be deposited to block the bank account. 
  • No need to stress about finding your refunds. The required amount will be debited from the linked bank account. It occurs at one condition when your application is picked during the allotment. 
  • Investors can earn interest without any hurdles. Moreover, it can be operational with the help of application money. 
  • It is easy to fulfill the application form.  

Mandatory Requirements to Apply for IPO through ASBA Pay Option

When it comes to the ASPA pay option for the Online Share Trading Platform, an investor should require the following things:

  1. Fill up an application form for the investor (applicable through ASBA)
  2. Finalising the list of IPO stock allocations.
  3. Link with ASBA account
  4. Selection of your form during the allotment phase
  5. Once you withdraw your issue, you will receive the clearance. 

When Can One Use a Lower Price Band Option? The lower-Price Band Option is appropriate to use in different Online Trading. Also, sellers need to mention the upper and lower cost limit. Finally, it helps buyers to place bids flawlessly.  

Can An Investor Apply on a Lower Price Band through ASBA Facility?

The answer is No. Only individual retail investors can utilize the ASBA payment option while doing Online Stock Trading. 

The Bottom Line!

In Online Trading, an investor won’t have the chance to take part in the lower price band of the ASBA. The application only accepts individual retail investors. 

IPO Stock Market is a goldmine for investors. However, the ASBA facility acts as a problem-solver for specific issues.