What is an ASBA facility?

ASBA (Application Supported by Blocked Amount) is an application that can be used by an investor to apply in IPOs/FPOs/Rights shares and acts as an authorisation to block the application money in the bank account for subscribing to an issue. When applied using the ASBA form, your money will be debited from the bank account only if shares are allotted to you. ASBA facility can be used when any company comes up with any type of issue i.e. public and rights.