ASBA – The Rebirth of StockInvest

NIBM’s Vinimaya (ISSN 0970-8456), Volume XXXII, No.3, pp. 37-44, October-December, 2011

Contemporary Issues in Marketing & Intellectual Property Rights, 1st Edition, Edited by Sanjiv Mittal and Amit Sharma, Macmillan Advanced Research Series, Macmillan Publishers

15 Pages Posted: 4 Mar 2014 Last revised: 19 Aug 2021

See all articles by Sanjiv Mittal

Sanjiv Mittal

Guru Gobind Singh Indraprastha (GGSIP) University - University School of Management Studies

Naresh Gupta

University of Delhi

Sudesh Kumar Sharma

Sinhgad Institute of Management & Computer Application; Sinhgad Institute of Management

Date Written: December 15, 2011

Abstract

SEBI introduced StockInvest Scheme in 1993 and ASBA (Application Supported with Blocked Amount) in 2008. The basic objective of both these schemes was to provide safety of investor’s subscription amount to public offers and avoid issuers to touch subscription amount beyond the issue size before allotment. While StockInvest Scheme, prevailed for a decade before it was withdrawn by RBI in November 2003, ASBA continues to prevail as on date. Both these schemes failed to catch the liking and preference of the investing community, particularly the retail investors. This preliminary study delves into the reasons for lackluster performance of these two schemes to conclude that while StockInvest was introduced in the market very late since the stock market was undergoing rapid changes for better transparency, processing time and secured transactions, the ASBA was introduced well ahead of its time.

Keywords: ASBA, StockInvest, Internet Banking, Online Banking, Lien Marking

JEL Classification: G10

Suggested Citation

Mittal, Sanjiv and Gupta, Naresh and Sharma, Dr. Sudesh Kumar, ASBA – The Rebirth of StockInvest (December 15, 2011). NIBM’s Vinimaya (ISSN 0970-8456), Volume XXXII, No.3, pp. 37-44, October-December, 2011, Contemporary Issues in Marketing & Intellectual Property Rights, 1st Edition, Edited by Sanjiv Mittal and Amit Sharma, Macmillan Advanced Research Series, Macmillan Publishers, Available at SSRN: https://ssrn.com/abstract=2404271 or http://dx.doi.org/10.2139/ssrn.2404271

Sanjiv Mittal

Guru Gobind Singh Indraprastha (GGSIP) University - University School of Management Studies ( email )

New Delhi, 110065
India

Naresh Gupta

University of Delhi ( email )

India

Dr. Sudesh Kumar Sharma (Contact Author)

Sinhgad Institute of Management & Computer Application ( email )

Sinhgad Narhe Technical Campus, Narhe-Dhayari Road
Ambegaon Budruk
Pune, Maharashtra, Maharashtra 411041
India
9960290601 (Phone)

Sinhgad Institute of Management ( email )

Pune, Maharashtra 411041
India

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