Can I apply for an IPO from my current bank account? Or do I need a savings account only for a share IPO application?
- Asked By
- Updated On:02-Apr-2024
- Replies:1
Short Answer
There is no provision for users to apply for an IPO through a current account. They would have to choose a savings account to get an IPO applciation processed further.
Detailed Answer
While applying for an IPO application, there are few things that one should keep in mind. These are to fill in the correct details under the bank account. Its where users often make the mistake of selecting a current account instead of a savings account.
In an IPO application, its night and day whether you can use a current account or not. If you use a current account, your application will be revoked at that moment. In the stock market, anything related to a bank account revolves around the savings account. Don’t forget that banks don’t have the option to link your current account to an IPO application.
The SEBI sets all the rules, and they have regulated that only savings account would be preferred in an IPO application. Thus, using a current account will enable your application to be null and void.
Though you cannot use your current account, you can use UPI instead. Paying using UPI is simpler and quicker. It is also a safe and reliable method. All you need is your UPI ID and that’s it. It also allows you to fill an offline IPO application. In short, this payment method can be used for both online and offline applications.
This method was introduced in 2018 by SEBI. Since then, people have been using it to make payments on their demat account. It happens instantly i.e. in real time. It's more or less similar to IMPS.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
The best stocks for college students to invest in in India are those with strong fundamentals and high dividend yields, such as Reliance Ltd., ITC Ltd., and Infosys Ltd.
There are plenty of things that should be kept in mind while filing your tax returns. These include sources of income, necessary documents, choosing the right form, filling in the correct details, tax liability, switching jobs report, TDS deduction, filing before the deadline and much more.
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.
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.
There is no possibility of a user having a sweep in/out account linked to their IPO application. It would simply get rejected.
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.
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.
Yes, it is completely safe to invest your money in the stock market using Paytm money App. In fact, PayTm has come up with stock broking services recently and trying to establish itself in the said field. And, to give tough fight to top existing players it has to keep its services up to the mark. Paytm Money made a big name in mutual fund investment industry and now it's time to see its performance in the stock brokers' world.
EPFO has made the system extremely flexible. Instead of withdrawal, employees can make a transfer to save for their retirement. Moreover, heading to their website can give you all the information you need to execute a PF transfer.
No, a demat account is not required for SIP or Systematic Investment Plan because a SIP can be purchased directly from an AMC (Asset Management Company), a third-party financial advisor, your bank, or other online platforms.