All About ASBA IPO Payment Option
ASBA stands for Application Supported by Blocked Amount. This application contains a validation from the client to inform the bank about blocking application money. It can be handled by mentioning an issue.
Many investors are taking part daily in Online Trading. However, a person can fill out the form with ASBA. They will be charged as per the application money, which will be debited directly from the bank.
However, there is a catch in the process. This debit option is only available when the applicant finds their chance as per the finalized allotment.
Pros & Cons of Having ASBA IPO Payment Option
In the IPO Stock Market, you will find different ups and downs. It has its advantages and disadvantages too.
Pros
- Don’t lose any chance on your interest income in the case of blockage of money in your bank account.
- ASBA clears out different payment formalities like DDs and cheques.
- ASBA offers hassle-free operations at zero cost.
- Easy to apply for ASBA through net banking.
- Helps in your Online Stock Trading.
- No need to worry about your refunds. At the time of no allotment of your shares, your money will be unblocked.
- ASBA considers the blocked amount in calculating the Average Quarterly Balance for your account.
Cons
- It could be a bad deal for you if you are not allotted in the positive listing.
- Chances to suffer through a few losses.
- High demand for an IPO can cause some problems.
- Applying for a higher number of IPOs may be harmful in the Online Trading Platform
The Functions of the Bank with respect to the ASBA Payment Option
A bang goes through the following steps to complete the formalities of the ASBA Payment Option:
- A customer should fill up your ASBA form first online.
- Also, offline forms are applicable at banks.
- After receiving the application, the bank goes through the application and blocks the application for further activities.
- All these steps are based on authorization.
- Within the period, the bank shall upload the data mentioned in the application within the bidding system.
- After the issues will be resolved, further notification will come to unblock the specific bank account.
Will Bank Alter Customer’s Fees in Case of ASBA IPO Transaction Method?
Well, the answer is a NO. Any bank that follows and completes the ASBA IPO Transaction Method won’t charge any fee.
Wrapping Up!
Online Trading Website is easy. In the case of the Bank’s charge, the answer is No. No bank asks for any extra fee for the ASBA IPO Payment Option.
The Best Trading Platform helps you to improve your standards and get higher returns. In case of any trouble, ASBA IPO is just a secure option to prefer.
Choose the best online trading platform, like Shoonya- which is already helping investors like you to make smart decisions. Make your investments peacefully!