Answer
Applying for IPOs with Special Account Types (Minor, HUF, Company):
- HDFC Net Banking: HDFC Bank customers with Minor, HUF (Hindu Undivided Family), or Company accounts can apply for IPO shares directly using Net Banking.
- Other Banks: In case your bank doesn’t offer online IPO applications for Minor, HUF, or Company accounts, you must fill out the paper IPO application form and submit it at a bank branch.
Is a Third-Party Bank Account Allowed?
- Yes, you can use a third-party bank account for an IPO application via ASBA, but very few banks, like SBI, still offer this option (known as a “3rd Party IPO Application”).
- Note: Most private sector banks do not offer the third-party application facility.
Important Updates on IPO Applications:
- ASBA Third-Party Applications Stopped
Since May 1, 2022, banks no longer allow third-party ASBA (Application Supported by Blocked Amount) applications for IPOs.
The PAN (Permanent Account Number) on the primary bank account must be the same as the PAN on the Demat account.
The maximum limit for IPO applications using UPI (Unified Payments Interface) is now ₹5 Lakh per transaction.
BSE Circular Information:
A circular from the Bombay Stock Exchange (BSE) confirms certain bank details.
- Find the BSE Notice: Search for Notice No. 20190619-23 on the BSE website.
- In ‘Annexure I.pdf’ (at the bottom of the notice), you will find:
“Trading Members with the 3-in-1 account facility will have the option to provide the bank details up to five banks.”