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Cancellation of IPO Applications through ASBA

Published : November 28, 2020

ASBA IPO Cancellation

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.

Can IPO Application be withdrawn?

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However, IPO applications can be canceled, and only after the blocked amount is released, the amount can be withdrawn.

The IPO applications through ASBA can be withdrawn just like it is done in other payment options. Once the application is withdrawn, the blocked amount is made available to the investors in 1 working day.

How can investors withdraw or modify their IPO Bids through ASBA?

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.

Canceling an IPO Application through ASBA

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:

  • The first step includes logging in to your net banking account and selecting an investment option. For instance, if you have an account in SBI, log in to your SBI net banking account, and select an investment option.
  • You will find an ‘invest online’ option. Click on the same.
  • Click on invest in IPO. You will get this option under the online IPO application.
  • Once you find the ‘invest in IPO’ option, you need to submit your request.
  • The next step asks you to enter the value that needs to cancel. Enter the required value and click on the submit button.
  • You will be redirected to a confirmation page. Verify the value and other relevant details and click on the submit option.
  • After you are done with that, select the option of the order book and click on the transaction ID.
  • Next, you can click on the option for withdrawing your application.

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.

Final Note

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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