Can I apply for an IPO with the savings bank account of my friends and family? I just want to increase my allotment chances in the IPO.
- Asked By
- Updated On:17-Mar-2024
- Replies:3
Short Answer
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.
Detailed Answer
There are merely two categories through which a person can apply for an IPO. All of which are illustrated in detail below.
1. 3rd party IPO applications
Through this method, banks offer users the privilege to let their family members and friends use their bank accounts to apply for an IPO. However, in this method, only five applications can use your bank account. It’s the perfect way to let a minor or an HUF apply for an IPO.
2. Self IPO applications
These are banks that allow users to let them share their bank account detail with another person to fill an IPO application. Only one IPO application should have the respective bank account details.
Though you can apply, there are some things to be kept in mind like:
- One IPO application will be eligible for a single PAN. It means 1 PAN = 1 IPO application.
- While ABSA, you can use any bank account you have.
- If you use UPI for payment, the account used must be of the applicant only.
Thus, if an IPO application has to be made on behalf of a minor family member or HUF or even a friend, you have to use the 3rd party IPO applications. You cannot do it from self application.
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Discussion (2)
If you are applying for an IPO using a bank account through 'ASBA', you will need an active Demat account number. You can place multiple IPO applications but make sure you apply them from separate Demat accounts. If you apply in a family member's name, make sure the PAN number registered with their demat account is different.
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.
Savings bank account is one of the most popular banking services. There is no maximum amount of money that needs to be maintained. A person is liable to keep any amount of money in the savings bank account.
There is no possibility of a user having a sweep in/out account linked to their IPO application. It would simply get rejected.
Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.
ASBA stands for Applications Supported by Blocked Amount, which is an alternative payment method to apply for an IPO. Let's go through some more details on it.
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.
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.
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.
Kotak bank account cannot be closed in online mode . The account can only be closed in offline mode by submitting the Kotak bank account closure form to the nearest Kotak Bank branch .
Adding money to Zerodha using UPI is the most commonly used method and is the most popular among the other methods. It is totally free and can be done with the help of any UPI application like Google Pay or BHIM UPI. This process can be done seamlessly with the help of Zerodha's web application as well as the mobile application- "KITE".
Akshat Pareek
Yes, you can apply for an IPO in the name of a family member, a friend, or a relative. However, each account is limited to five applications. As a result, you can subscribe to an IPO using a friend's or relative's Demat account. You can apply for an IPO directly through your Demat account or contact your broker and authorise them to apply on your behalf.