Can a minor apply in IPO?

Short Answer

Have you ever wondered id a minor can apply for an IPO? Yes, a minor can apply for an IPO given that he/she has a PAN card and a Demat account.

Detailed Answer

To answer this question in detail, let's take into consideration what a minor exactly means. Minor is an individual who happens to be below 18 years of age. Especially in India, you are classified as a minor if you're below 18 but an adult if you are above 18 years. All the rules of regulations that regarding adults and minors are different when it comes to financial institutions and transactions of any type.

When It comes to applying for an IPO, minors can apply for an IPO given that they have a Demat account. They cannot open a Demat account by themselves as they need to be supervised by an adult or a guardian. If the minor has no parents then, a court will appoint an adult in their IPO investing endeavor. However, for minors to invest in an IPO, they need to have a PAN card.

Summing everything together, a minor can apply for an IPO given that they have a Demat account and PAN card. But once they turn into an adult, then they have two options. Either to convert the minor Demat account to a major one or close the minor account entirely. Its up to them to decide. If you're wondering why a Demat account is required, then it's where all the shares that you will be getting from an IPO will reside, and the trading account is where these shares are traded in the stock market.

Tagged With: ipoapply ipominor ipo applicationinitial public offering
Categories: IPO Basics
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Related FAQs

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

What is an IPO or Initial Public Offering?

IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time.

Can I apply an IPO application in the name of Minor or HUF?

Yes, you can apply for an IPO applciation under a minor or HUF's name, provided they have different PAN card numbers.

Can we apply for an IPO online on Sunday?

Yes, you can apply for an IPO application on Sunday as well but through an online application. But, you need to keep few points in mind before doing that.

Can I apply in an IPO through multiple applications on same name?

No, a person cannot apply for a single IPO more than ones. There are strict rules and regulations followed in this matter. However, his/her family members can apply for the IPO under their name provided they have a demat account and PAN number.

How to apply IPO in Zerodha? Buy 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.

How to increase IPO allotment chance?

Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.

Where do I get an IPO application form?

An IPO application form can be procured from a syndicate office member of the IPO or a stockbroker. You can download and print the IPO forms.

How many IPO applications can I submit through online net banking from one bank account?

There are about 5 IPO applications that can submit through online net banking from one bank account. However, the number can change immensely from one bank to another.

Is it mandatory to have a PAN Number to apply in an IPO?

Yes, it is mandatory to have a PAN number to apply for an IPO since July 2006 as per Securities and exchange board of India (SEBI).