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Published on Tuesday, September 14, 2021 by Chittorgarh.com Team | Modified on Tuesday, July 19, 2022
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.
Multiple IPO application feature vs Single IPO application
| Multiple IPO applications | Single IPO application |
|---|---|
| Possible only through banks offering 3rd party IPO application facility. | Possible through any ASBA supported banks or through UPI. |
| Can apply up to 5 IPO applications | Can apply only for self |
| Though bank account can be different, each applicant should have PAN card and Demat account. | Bank account, Demat account, and PAN card should belong to the same person. |
| Payment is allowed only through the ASBA account. | Payment allowed through ASBA account as well as UPI |
| Can apply for family members and friends. Only online mode to apply for IPO for minor and HUF. | Cannot apply for family members and friends. |
Banks offering 3rd party IPO application
Most banks allow to apply only for one IPO application in the self-name wherein the bank account, Demat account, and PAN of the IPO applicant should be the same. There are very few selected banks that allow 3rd party IPO applications:
Third-Party IPO application process
The 3rd party IPO application process is the same as used for the ASBA IPO application except for the step wherein you can add other applicant details other than self.
Steps to apply using 3rd party IPO application:
- Login to Net Banking.
- Go to the IPO section.
- Select the desired IPO for application.
- Select category of application – Retail or HNI.
- Select the applicants or add new applicants.
- Verify prefilled information. (Demat account, PAN, email id, etc.)
- Enter the bid details – Lots/Quantity and bid price.
- Check the applicant's details and confirm.
- Verify OTP sent your registered mobile number.
Note:
On a successful IPO application, the required amount gets blocked by ASBA from your bank account.
SBI does not send OTP for every IPO application if you are applying through HUF bank account.
3rd party IPO Application Timing
The investors can apply for an IPO any time after the IPO gets opened till 2 PM/3 PM on the issue closure date. However, the application gets submitted to the exchange only between 10 AM to 5 PM as the exchange bidding system is opened only during that window on working days.
While the exchange bidding window is open till 5 PM, most banks provide the ASBA IPO application facility only till 2 PM or 3 PM on the last day. Check bank-wise IPO application cut-off time for more detail.
Conclusion
The third-party IPO application feature offers the flexibility to apply for multiple IPO applications for your family and friends using one bank account. Each applicant should have their PAN and Demat account. You cannot apply for more than one application in one name, as only one IPO application is allowed per person.
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