Can I Apply for IPO without Demat Account
There has been a massive interest in IPOs for investors in recent times. The prospect of substantial gains with lower listing prices has drawn the investor’s Initial Public Offerings (IPOs).
Many investors are looking for an opportunity to submit an application in an IPO and earn money from it. One of the frequently asked questions is whether you could make an application to an apply for IPO and without demat account.
In the ideal scenario, every investor who wishes to trade or invest in stocks should have a Demat account, as is the case to invest in IPOs. The entirety of the IPO shares is kept in a digital or dematerialized format inside these Demat Accounts that you can open by logging into the help of your Depository Participant (DP).
This is not just making the buying and selling of IPOs or stocks and other securities simpler but is also a requirement for all investors in the stock market. What happens if you’d like to be able to apply for IPO but don’t have a Demat Account?
In the following article, you can find out apply for IPO and without demat account.
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First Public Offering
An IPO sometimes referred to in the context of an initial public offer, is a type of public sale where the company’s shares are offered to institutional investors and individuals most of the time. A stock launch IPO is typically backed through one or more banks which also make arrangements that the shares be listed on some or all of the stock exchanges.
It is possible to invest in equity and be accomplished through various methods. Stocks can be bought directly via the stock market, mutual funds or derivatives, and other options. In addition to these options, investors might be interested in a different strategy to invest in businesses at a relatively low cost. The IPO is an acronym for Initial Public Offering (IPOs).
You are able to apply for IPO without having a Demat Account if you’d like, but as the market for stocks has become completely digital and you can not hold physical shares. It is extremely difficult to get one.
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How do I apply to the First Private Offering (IPO) without a Demat account?
You can apply to an IPO without having a Demat Account. However, it’s a lengthy procedure. In short, it is that having a Demat account is beneficial but not necessary in the case of an IPO. It is important to have a Demat account becomes mandatory since it is only through the Demat Account that you’ll be able to keep all your securities.
The transfer of shares physically is also prohibited by SEBI. In the end, Demat Accounts offer protection to your investment portfolio and must be established prior to you submitting the IPO application. It is complicated to apply for an IPO without having a Demat Account. With a few easy steps and having some documents in your possession, it is possible to simply sign up for a free Demat Account:
- PAN card
- Aadhar card
- Bank Account Information
- Signature
Let’s look at how easy it is to apply for IPO.
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What is the procedure to make an application for an Initial Public Offering (IPO)?
To be eligible for an IPO, it is necessary to create a Demat Account through a stockbroker. You can make an application for IPO in offline or online mode after you have opened an account with a Demat.
If you’re applying for the IPO offline, you’ll have to visit your stockbroker’s or bank’s branch closest to you and complete the ASBA Form that you can easily obtain from the NSE website. In addition, to pay the necessary charges, you’ll need to submit a check.
After the successful IPO application, the amount required will be blocked from your account. It is not available to use until the IPO is allocated. In general, ASBA is required for IPOs. Let’s review how you can use ASBA to make an application for an IPO after we’ve covered the subject briefly.
How can I make an application for an IPO through the ASBA?
A POSITION SUPPORTED BY BLOCKED Amount (ASBA) is an investor’s app that has the authorization of Self-Certified Bank (SCSB) to stop the flow of funds from an applicant’s Savings Bank Account or Current Account (other than Overdraft and loans accounts) to join an Issue for the amount of the application.
Through online banking or accounts for trading, you can make an application for IPO at the price of the issue. Once you’ve applied, ASBA will block the amount of the IPO you have applied for on your account (Application Blocked Amount Supported). This indicates that the required amount will be kept in reserve until the share distribution.
The Securities and Exchange Board of India (SEBI) has established ASBA an obligation to be met for IPO applications. Up to the finalization of allotment in the issue or rejection of the issue or the rejection or withdrawal of the application, the amount will be held in your account until the IPO is not allocated.
If you want to apply for an IPO online, be sure to follow the guidelines carefully:
- Log on to the Choice, the official site of India, or start Jiffy. Jiffy App to open a free Demat Account using Choice.
- Jiffy by Choice offers a separate section dedicated to IPO applications, making submitting for an IPO the easiest thing to do.
- Visit the section where you can submit your application to be considered for an IPO.
- Select the IPO you’d like to apply to from the provided list of IPOs.
- Then enter the amount of money, the price, and your UPI ID into the application window.
- You can click on the following button.
- You will be given the instructions to block the amount you have requested in your account at the bank.
- This amount will be blocked from your account once you’ve completed the task.
If you don’t receive the allotment, keep in mind that the amount is not blocked. It can be taken out only if you are awarded an IPO allocation.
Conclusion
You can purchase an IPO without having a Demat account. But, it is a long and complex process. In addition, it’s not a secure or legal procedure in today’s current digital age.
If you’re successful in the application process for an IPO and you are successful, you’ll require an account with a Demat to receive your shares if an IPO is granted to you. Create a no-cost Demat Account today with Choice and make an application for an IPO quickly and easily.
