Answer
Current IPO Application Rules (Effective May 1, 2022):
- No More 3rd Party ASBA: Banks have stopped accepting Initial Public Offering (IPO) applications through 3rd Party ASBA (Application Supported by Blocked Amount).
- Matching PANs are Mandatory: The PAN (Permanent Account Number) of the main account holder in your Bank Account and your Demat Account must be the same for the IPO application to be valid.
Specific Account Holders:
- HDFC Bank: Allows Minor, HUF (Hindu Undivided Family), and Company accounts to apply for IPO shares using their Net Banking facility.
- Other Banks: If your bank does not offer online IPO applications for Minor, HUF, or Company accounts, you must submit a physical (paper) IPO application form directly at a bank branch.
UPI Payment Limit:
- The maximum amount you can use for an IPO application via UPI (Unified Payments Interface) has been raised to ₹5,00,000 (Five Lakh Rupees) per transaction.
Understanding 3rd Party IPO Applications (Using Someone Else’s Bank Account):
You may be able to use a bank account belonging to a family member, like your father’s, to apply for an IPO, but only under specific, limited conditions. This is known as a 3rd Party IPO Application.
Conditions for Using a 3rd Party Bank Account:
- Bank Policy: The bank must specifically offer the 3rd Party IPO Application facility. For example, banks like SBI, Axis, and RBL may offer this, but others like HDFC and ICICI do not.
- Applicant’s Details are Key: The person applying for the IPO must have their own PAN Number and Demat Account registered in their own name.
- Allotment is PAN-Based: The IPO shares are allotted (given) based on the applicant’s PAN number, not the bank account used for payment.
- UPI Restriction: The 3rd Party IPO application is not possible when you choose UPI as the payment option.