Can a minor apply in IPO?
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- Updated On:19-Mar-2021
- Replies:1
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.
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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.
IPO prospectus is the document which gives information to the investors about the company statistics before they issue shares in public. It is mainly a 3 step process. For detailed description, read through the blog below.
An IPO or Initial Public Offering is where for the first time an earlier unlisted company sells new or existing securities and offers them to the public in the primary market.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
There are many ways to check the IPO allotment status but Zerodha doesn't provide this facility on their website.** To check the allotment status you can visit the website of the registrar of the IPO**, for example, Link Intime, Karvy. With the help of a PAN number, you can easily check the status.
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.
In an Initial Public Offering (IPO) a company sells its shares to investors in order to raise money. As a retail investor, you can apply for an IPO from the primary market in order to get the shares offered by the company. Once the shares get listed on the secondary market, you can sell your shares provided you have received an allotment in the primary issue.
Yes, you can apply for an IPO application for your family and friends through your savings bank account details. However, keep in mind that only five applications can be filled with the same bank account details.
IPO is the primary stage where the company goes public and starts gaining investments from people. It is essential for the company to manage the details properly. For Public, IPO should remain open for at least 6 days and for maximum 10 days.
IPOs can be a good option for beginners as they provide an opportunity to get the shares of good companies at an attractive price. Though IPOs can provide good listing gains and quick profits, good companies can help you to create massive wealth in the long term.