10 November 2024
ASBA is a process used by investors to apply for shares during a public issue (such as an IPO or rights issue). The investor’s application amount is blocked in their bank account, but the funds are not transferred until the shares are allotted. If the investor does not receive shares, the blocked amount is released.
A buyback is when a company repurchases its own shares from the stock market or directly from shareholders. This process is often done to reduce the number of outstanding shares, increase earnings per share (EPS), or return surplus cash to shareholders.