Answer
Yes, you need a Demat account because shares are issued electronically. You also need a PAN card and a bank account for the ASBA process.
Key Points About IPO Subscriptions:
- A Demat account is essential as it stores the shares if your application is successful.
- Without a Demat account, you cannot apply for an IPO since there is no place to keep the shares.
- Although not mandatory for applying, a trading account is usually needed to sell the shares later.
- The name on the IPO application must match the primary account holder’s name on the Demat account to prevent rejection.
- You can apply for an IPO using a minor’s Demat account.