For IPO applications
Yes. ASBA has been mandatory for all retail investors applying for IPOs since January 1, 2016, as per SEBI regulations. All IPO issuers must offer the ASBA facility, and retail investors are required to use it for their applications.
The only exception is for Anchor Investors, who are exempt from the ASBA requirement.
For Mutual Fund NFO applications
No. For mutual fund NFOs, ASBA is not mandatory. Eligible investors may apply either through ASBA or by using the traditional cheque-based application method.
However, ASBA is strongly recommended because it offers multiple advantages such as convenience, enhanced safety, and the ability to continue earning interest on the blocked funds.
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