Are there any charges for applying for an IPO?

Are there any charges for applying for an IPO?

Applying for an IPO is generally free, but there could be some associated costs related to your Demat account or selling the shares later.

What is ASBA?

Applications Supported by Blocked Amount (ASBA) is a process developed by India's Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant's account gets debited once shares are allotted to them. It's a process designed to make applying for Initial Public Offerings (IPOs) in India more efficient and secure for both investors and companies.

With ASBA, when you apply for an IPO, you essentially give your bank permission to freeze the application amount in your account temporarily. This blocked amount sits there like a placeholder, and it will only be deducted from your account balance if your IPO bid is successful.


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