Published : November 28, 2020
By now we all know ASBA’s full form and what is ASBA when talking about IPO Applications is. The next question that arises commonly among investors is that is it possible to cancel IPO applications through ASBA. Also, many investors end up confused about whether they can withdraw or modify their ASBA Bids.
The following article will talk about these things for the assistance of investors so that next time they apply for an IPO, they don’t find themselves lost.
There is a lot of confusion among investors regarding whether they can withdraw their IPO Applications when applied through ASBA or not.
It is vital for investors to know that they cannot withdraw their IPO applications. This is because as soon as an investor applies for an IPO through ASBA, a block is created in the investors’ linked bank account for the amount applied for. This block from the bank account is removed only when the allotment of the issue is over.
However, IPO applications can be canceled, and only after the blocked amount is released, the amount can be withdrawn.
The IPO applications through ASBA can be withdrawn just like it is done in other payment options. Once the application is withdrawn, the blocked amount is made available to the investors in 1 working day.
Withdrawal or modification of ASBA Bids is possible. Investors can approach their bank during the bidding period. On reaching the bank, investors need to request for withdrawal or modification of the ASBA bids through a duly signed letter. The letter should cite both your application number and TRS number to withdraw or modify the bid.
However, once the bid is closed, the investor will have to send the withdrawal request to the registrar of the issue. It is the registrar of the issue who will cancel the bid in this case. The registrar instructs the SCSB to unblock the application money of the trader. This process is carried out only after the finalization of the basis of allotment of IPO shares.
IPO Applications through ASBA can be canceled only before the end date of IPO subscription. However, the general steps that can be followed to cancel the IPO application through ASBA are as follows:
There is a possibility that the IPO might not offer an online withdrawal option. In this case, you’ll be required to contact either your broker or your bank to get your application canceled or withdrawn.
A lot is unclear among the investors regarding the cancellation or withdrawal of their IPO applications through ASBA. The ASBA bids for your IPO application can be made only before the allotment of the shares takes place. This means that you can modify your IPO application only till the time it is in the subscription period.
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