Can one apply an IPO from sweep in/out saving bank account?

Short Answer

There is no possibility of a user having a sweep in/out account linked to their IPO application. It would simply get rejected.

Detailed Answer

In an IPO application, the bank details that you might fill needs to be that of a savings account under your name. It’s required to have integrity with the other details that you might have given along with the application. However, when you look into the different types of bank account details that aren’t allowed, then-current, sweep in/out accounts aren’t allowed.

The account needs to be a normal savings account with the amount you are looking to invest in the IPO and linked to your Demat account. Ensure that you have the amount; if not, there are higher chances of the application being rejected, and there might be some penalties or fines for the insufficient funds in your account.

Tagged With: ipoapply iposweep in accountipo application
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.

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.

Can I apply IPO in name of family members & friends from my saving bank account?

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.

Can I apply in an IPO from my current bank account?

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.

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.

Can I apply for more than 1 Lot in IPO from different Demat accounts?

Yes!, one can apply 1 Lot from different Demat accounts but they have to make sure that the other Demat account should not be mapped under their name or PAN Card. If one applies through 2 or more Demat accounts that are mapped under their name then all of the applications will get rejected.

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

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.

Which is best bank to open Savings account in India?

Looking into the interest rates, minimum savings required in the account, easy online facilities are few of the many options you should consider while choosing a savings account with any respective bank.

I do not have a Demat account. Can I apply for an IPO?

Although there are ways such as ASBA facility of your bank that you can use to open an IPO without Demat Account. It is still advisable to have a Demat Account.

Is it mandatory to have a Demat account to apply in an IPO?

Yes and no at the same time. Although you can apply for an IPO without a Demat Account in some cases, the allotted shares are tradable through a Demat Account, Thus, a Demat account is recommended for an IPO.