What Is ASBA (and UPI) for IPO Applications?

ASBA stands for Application Supported by Blocked Amount. It is the mandatory mechanism for applying to IPOs in India: instead of paying the money upfront, the application amount is blocked in your own bank account. It is debited only if — and to the extent — shares are allotted to you.

How ASBA protects you

• Your money stays in your account and keeps earning interest until allotment.
• If you get no allotment, the block is simply released — no refund delay.
• If you get a partial allotment, only that portion is debited.

The UPI route for retail investors

Retail investors apply through the UPI-ASBA flow: you enter your UPI ID while applying, approve a mandate in your UPI app, and the amount is blocked. It's the same blocked-amount principle, made one-tap through UPI. This is a uniquely Indian system built by SEBI and NPCI.

After you're allotted

Once shares are credited to your demat account and the stock lists, you can follow its price and financials through the API. New to IPOs? Start with what an IPO is.