What is DRHP? and What is ASBA?

What is DRHP?
Draft Red Herring Prospectus (DRHP) is the document prepared by merchant bankers when companies file for IPO. The document contains information about the company, promoters, financials, and operations of the company.

The document explains the reason why the company wants to raise money, and how the money will be used according to the protocols of the regulator, the company have to submit DRHP with SEBI (The Securities and Exchange Board of India, ROC (Registrar of companies) and stock exchanges.
What is ASBA?
ASBA (Applications Supported by Blocked Amount) is a process developed by India's Stock Market Regulator SEBI for applying to IPOs, Rights issues, FPS, etc. In ASBA, an IPO applicant's bank account doesn't get debited until shares are allotted to them.

 ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed.


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