Yes, you can apply for an IPO application for your family and friends through your savings bank account details. However, keep in mind that only five applications can be filled with the same bank account details.
There are merely two categories through which a person can apply for an IPO. All of which are illustrated in detail below.
1. 3rd party IPO applications
Through this method, banks offer users the privilege to let their family members and friends use their bank accounts to apply for an IPO. However, in this method, only five applications can use your bank account. It’s the perfect way to let a minor or an HUF apply for an IPO.
2. Self IPO applications
These are banks that allow users to let them share their bank account detail with another person to fill an IPO application. Only one IPO application should have the respective bank account details.
Though you can apply, there are some things to be kept in mind like:
- One IPO application will be eligible for a single PAN. It means 1 PAN = 1 IPO application.
- While ABSA, you can use any bank account you have.
- If you use UPI for payment, the account used must be of the applicant only.
Thus, if an IPO application has to be made on behalf of a minor family member or HUF or even a friend, you have to use the 3rd party IPO applications. You cannot do it from self application.
If you are applying for an IPO using a bank account through ‘ASBA’, you will need an active Demat account number. You can place multiple IPO applications but make sure you apply them from separate Demat accounts. If you apply in a family member’s name, make sure the PAN number registered with their demat account is different.
Yes, you can apply for an IPO in the name of a family member, a friend, or a relative. However, each account is limited to five applications. As a result, you can subscribe to an IPO using a friend’s or relative’s Demat account. You can apply for an IPO directly through your Demat account or contact your broker and authorise them to apply on your behalf.
No, you cannot legally apply for an IPO using your friends’ or family members’ savings bank accounts just to increase allotment chances unless each application is genuinely made by that individual. As per SEBI rules, one PAN = one IPO application in a category, and the bank account, PAN, demat account, and applicant name must all belong to the same person.