Alert:
- Banks in India no more offer the 3rd Party ASBA IPO application starting from 1st May 2022. The PAN number of the primary account holder in the Bank Account and Demat Account should be the same for valid IPO applications going forward.
- HDFC Net Banking now allows Minor, HUF, and Company accounts to apply for IPO shares online.
- For other banks who doesn’t offer online IPO applications to Minor, HUF, and Company accounts, you have to submit the Paper IPO Application forms by visiting the bank branch.
- The UPI limit for IPO applications increased to Rs 5 lakhs per transaction.
The third-party IPO application allows investors to submit multiple IPO applications in an IPO from one bank account using a Net banking facility. You can apply in up to 5 IPO applications using one bank account.
The 3rd Party IPO application is available only in a few banks like SBI, Bank of Baroda, RBL, Axis, and IndusInd Bank. Although the investors can apply up to 5 IPO applications from a single bank account, each applicant must have their PAN cards and Demat accounts. The payment for the IPO application is allowed only through the ASBA account. You cannot make payments using the UPI.
The 3rd party IPO application is the only way to apply in an IPO in the name of Minor and HUF. However, the bank account holder needs to be the minor’s guardians or Karta of the HUF, as the case may be.
3rd Party IPO Application Benefits
- Up to 5 IPO applications using a single bank account.
- Allows IPO application for your family and friends using the same bank account.
- Only online mode of IPO application for a minor and a HUF.
Points to Note:
- Demat account and PAN should be of the applicant.
- Payments are allowed only through the ASBA account.