Definition
Self-Certified Syndicate Bank (SCSB)
An SCSB is a bank registered with SEBI to offer ASBA, blocking and releasing IPO application funds in investors' accounts.
Self-Certified Syndicate Banks are the banks authorised to provide the ASBA facility. When an investor applies through ASBA, it is the SCSB that blocks the amount in the savings account and later debits or releases it based on the basis of allotment.
The list of SCSBs is published by SEBI. In the UPI route, the sponsor bank and the investor's UPI-linked bank perform a similar blocking function. SCSBs are central to ensuring that no money leaves the investor's account until shares are actually allotted.
Related terms
- ASBAASBA (Application Supported by Blocked Amount) is the mechanism where IPO application money stays blocked in the investor's bank account until shares are allotted.
- UPI Mandate (IPO)A UPI mandate is the pre-authorisation an IPO applicant approves in their UPI app to block the application amount until allotment.
- Registrar to an IssueThe registrar is the SEBI-registered intermediary that processes IPO applications, finalises the basis of allotment and handles refunds and share credits.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.