Answer
The Initial Public Offering (IPO) application will almost certainly be rejected if you use someone else’s bank account or UPI ID.
- SEBI’s Requirement (PAN Match): The Securities and Exchange Board of India (SEBI) has a clear rule. The person who owns the bank account/UPI ID must be the same person applying for the IPO (the Demat account holder).
- The Main Problem: A mismatch in the Permanent Account Number (PAN) is the biggest issue. The PAN linked to the bank account must be identical to the PAN linked to the Demat account.
| Application Type | Status | Simple Reason for Rejection |
| Using a Third-Party UPI ID | Not Valid (Almost Always Rejected) | The UPI ID is tied to someone else’s bank account/PAN. The registrar will reject it. |
| Using a Third-Party ASBA Bank Account | Generally Rejected | Even if the money is held in a relative’s or friend’s account, the PANs won’t match. |
The Exception:
A few banks, such as SBI, might occasionally allow a single bank account to be used for a small number (e.g., up to 5) of different IPO applications. However, this is rare, depends on the bank’s internal rules, and is not a general rule.
Summary to Remember:
To ensure your IPO application is successful, never use a friend’s or relative’s bank account or UPI ID. The PAN on your bank/UPI account and your Demat account must be the same.