Can I apply for more than one lot in an IPO from a different demat account? How is this possible and how can I do this?
- Asked By
- Updated On:02-Apr-2024
- Replies:1
Short Answer
Yes!, one can apply 1 Lot from different Demat accounts but they have to make sure that the other Demat account should not be mapped under their name or PAN Card. If one applies through 2 or more Demat accounts that are mapped under their name then all of the applications will get rejected.
Detailed Answer
In short Yes!, you can apply for more than 1 Lot from different Demat accounts but there are some points that you should keep in mind while applying for an IPO.
- Never apply from more than 1 Demat account from the same PAN number- According to SEBI 1 retail individual cannot apply for 1 IPO from more than 1 Demat account which is mapped under one PAN Number. This means that if you have a Demat account with Zerodha and Upstoxx at the same time then you can apply for an IPO only through any one of them. If you apply from both of them then both of the applications will get rejected and you will not be allotted any shares.
- When an IPO is subscribed the maximum Lots that a Retail investor can be allotted is 1Lot- This is another important point that every person applying under the RII (Retail Individual Investor) should know. If an IPO is oversubscribed in the RII category then no matter how many Lots one has applied for, they will get a maximum of 1 Lot if they are have been successfully allotted the shares. So if you have applied for 3 Lots from your account and that specific IPO gets oversubscribed then even if you get the allotment of the shares then the maximum number of shares that you are going to get is 1 Lot.
Can I apply for more than 1 Lot in IPO from different Demat accounts?
Now, to answer the question of how to apply for multiple Lots from different Demat account-
To increase the chances of allotment under the RII category where the allotment is finalized through random picking which is also known as the Lottery system, you can apply for 1 Lot each from a different Demat account that is not under your name.
For example, If you apply for 1 Lot from your Demat account, apply 1 Lot from any other of your family member’s accounts or any of your friend’s accounts. In this way, you will be able to increase your chances of allotment in an IPO.
Applying multiple applications is obviously permissible but there are certain restrictions that you have to be careful about.
You cannot apply under different categories. It means that if you are an individual investor then you have no right to apply under the HNI category. If found, all your applications will be rejected.
- Applying the same IPO through different brokers is also not allowed. So, you have to choose a single broker and then apply via him only.
- You cannot ignore the rule- One application One PAN . Breaking it or changing combinations is also not allowed.
- Similarly, you will not be allowed to apply for multiple applications through a single UPI account.
To increase the chances of allotment, you should always use the Cut-Off price while applying for an IPO, as the Retail investors only have the luxury of applying at the Cut-Off price. Just by selecting the Cut-Off price, you outbid the investors who have placed a bid lower than yours. In this way, you can make sure that you have done your best to increase the chances of allotment of an IPO.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Yes, you can apply for an IPO application under a minor or HUF's name, provided they have different PAN card numbers. Minors can open a Demat account with their parent’s PAN Card and bank account.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
As online trading is getting popular every day, it is becoming even more important to choose the right trading platform. Choosing the best trading platform can give you more flexibility to trade in the various trading market.
The differences between the two stockbrokers might be plenty, but the better one between them comes down to the differences they sport. Let’s learn a bit more about them and understand what each one has to offer before making a final decision.
Paytm Money and SBI Cap Securities have many differences when it comes to the brokerage, segments of investment offered, and other such parameters. We have illustrated everything in detail below to know what these differences are and which one you might want to choose.
No, a Demat account is not required to invest in mutual funds in India. Instead, there are a number of other options, such as Asset Management Companies (AMCs) or offline distributors through which you can directly invest in mutual funds without opening a demat account.
The opening charges of an ICICI Demat account is zero. However, the Demat account's annual maintenance charges are 700 rupees per annum, and the trading account opening charges are 975 rupees per annum.
HDFC Securities is not a discount broker like Zerodha and Upstox, and its fees are higher when compared to them. Despite this fact, HDFC Securities is among the popular full-service stockbrokers in the country.
Comparing the two stockbrokers to see which ones is the best can be a hurdle given that they both have so much to offer. However, if you want to know the broker, is that better? Then we have all the differences and comparisons listed below.
Angel Broking and Paytm Money both these platforms are popular among traders. But if you are a beginner or if you want to switch to a new trading platform and you are considering choosing one of these two, and then you came to the right place.