Multiple choice general knowledge

Recently you can see the IPO applications with ASBA option. What is full form of ASBA?

  1. Application Supported by Backed Amount

  2. Application Supported by Blocked Amount

  3. Application Supplied by Blocked Amount

  4. Application Supported by Blocked Approve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

ASBA stands for 'Application Supported by Blocked Amount' - a mechanism developed by SEBI where IPO application funds remain blocked in the applicant's bank account instead of being deducted, reducing interest loss. The 'B' in ASBA is for Blocked, not Backed or Supplied.

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