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Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading.
- ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
- The facility will be optional for investors and stock brokers.
- Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.
Which of the above statements is/are correct?
- a)1, 2
- b)1 only
- c)2, 3
- d)1, 2, 3
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding Application Supported by B...
ASBA-like facility for trading
Introduction:
ASBA-like facility for trading is an application by an investor that contains an authorization to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
Statement 1:
ASBA is an application by an investor that contains an authorization to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
This statement is correct. ASBA is a process developed by the Securities and Exchange Board of India (SEBI) for making public issues. Under this process, an investor's money remains in their bank account, and only a block is made against the application money for subscribing to an issue.
Statement 2:
The facility will be optional for investors and stockbrokers.
This statement is also correct. The ASBA facility is optional for both investors and stockbrokers. They can choose to use this facility or not.
Statement 3:
Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.
This statement is incorrect. SEBI has not cancelled the ASBA-like facility for trading in the secondary market.
Conclusion:
Therefore, the correct answer is option A, i.e., Statement 1 and Statement 2 are correct.
Introduction:
ASBA-like facility for trading is an application by an investor that contains an authorization to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
Statement 1:
ASBA is an application by an investor that contains an authorization to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
This statement is correct. ASBA is a process developed by the Securities and Exchange Board of India (SEBI) for making public issues. Under this process, an investor's money remains in their bank account, and only a block is made against the application money for subscribing to an issue.
Statement 2:
The facility will be optional for investors and stockbrokers.
This statement is also correct. The ASBA facility is optional for both investors and stockbrokers. They can choose to use this facility or not.
Statement 3:
Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.
This statement is incorrect. SEBI has not cancelled the ASBA-like facility for trading in the secondary market.
Conclusion:
Therefore, the correct answer is option A, i.e., Statement 1 and Statement 2 are correct.
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Community Answer
Consider the following statements regarding Application Supported by B...
- The capital markets regulator, Securities and Exchange Board of India (SEBI), recently approved a framework for Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.
- The facility will be optional for investors and stock brokers. To facilitate smooth transition in the market, the framework will be implemented in a phased manner.
- ASBA, which was first introduced by SEBI in 2008, is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue.
- An SCSB is a recognised bank capable of providing ASBA services to its customers.
- The application money of an investor applying through ASBA shall be debited from the bank account only if her application is selected for allotment after the basis of allotment has been finalised. In public issues and rights issues, all investors have to mandatorily apply through ASBA.
- At present, ASBA is available for the primary market, wherein the initial public offering (IPO) funds only are blocked on application, and are debited only on allotment.
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Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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ample number of questions to practice Consider the following statements regarding Application Supported by Blocked Amount (ASBA)-like facility for trading. ASBA is an application by an investor that contains an authorisation to a Self-Certified Syndicate Bank (SCSB) to block in the bank account the application money for subscribing to an issue. The facility will be optional for investors and stock brokers. Recently SEBI cancelled the Application Supported by Blocked Amount (ASBA)-like facility for trading in the secondary market.Which of the above statements is/are correct?a)1, 2b)1 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
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