Do I have to pay any brokerage at the time of applying for an IPO?
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- Updated On:24-Feb-2021
- Replies:1
Short Answer
No, the application process for an IPO can be availed with zero brokerage fees. Applying in an IPO is free of cost and you don't have to bear a fee.
Detailed Answer
IPO Stands for Initial Public Offering, which is a process by which any private company becomes a public company by offering its shares to the general public for the very first time. It is the process by which a company gets listed on the stock exchange, so that the public can buy their share, unlike a private company where a handful of shareholders shares the ownership.
Brokerage Fee for Applying for an IPO
There are no brokerage fees associated to apply for an IPO. All you need to do is to maintain a minimum amount that will be applicable as your application fee for an IPO.
Even though you don't have to pay any brokerage fee for applying for an IPO, when you sell your shares, you have to pay brokerage and taxes for that IPO.
Moreover, if a stock broker like Zerodha who offers brokerage-free equity delivery trading, it's likely it won't charge commission even while selling the allocated IPO shares sold through it.
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Stoxkart online discount broker also provides IPO investment facility to clients. The best part is that stoxkart facilitates both the Indian as well as NRIs to invest in IPO online.
If you are a Zerodha customer, you can apply for IPO online through Zerodha Console (Zerodha Back-office). The process for applying an IPO process has been explained in detail above. Here are few other answers to important queries that you may want to learn.
Yes, one can have multiple demat accounts, but there is a restriction: you cannot open more than one demat account with the same depository participant (DP) or broker. Instead, you can open other demat accounts with different brokers.
While applying for an IPO a person either uses the UPI or ASBA facility for the payment and in both the process the total amount of money remains blocked by the bank under a "Mandate" until the allotment process is finalized hence the amount remains in the bank account of the investor and only gets debited if he/she receives the allotment of the shares.
There are many drawbacks such as up-front costs, liability augmentation, extensive decision-making processes, reporting costs increase exponentially, etc. These are just a few; based on the company's performance, many other drawbacks might arise.
Annual Maintenance Charge or AMC for a Demat Account is a mandatory fee need to be paid by each investors. In case of a non payment of AMC, your Demat Account will be announced inactive by your DP.
With every stockbroker, there are some advantages and disadvantages. The cons of Upstox are plenty but covers up through its advantages. However, its disadvantages are that the trade and call feature is charged 20 rupees, IPO & FPO investment opportunities are not available, under the delivery segment, GTC & GTD orders aren’t supported, etc.
Yes, NRI can invest in Smallcase in Zerodha. They can invest using any NRI demat account they have with Zerodha, whether it is NRE PIS or NRO non-PIS.
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.
Wise is one of the cheapest ways to send money internationally as compared to other available options in India. The only limitation of Wise is that it does not integrate with e-commerce online payments.