Can I Apply For IPO Without Demat Account?

IPOs have always had a charm, and the reason behind that is the possibility of substantial listing gains. Therefore, a lot of people now look for an opportunity to invest in IPO and make the best out of it. But a general question that comes across is, can I apply for IPO without a demat account?

While there might be different responses, the answer to this question is yes. If you want, you can apply IPO without a demat account but to hold the IPO you should have a demat account and for trading, you should have a trading account.

Hey but wait, are you sure you know the IPO meaning in the first place? Make sure you do, before you get into the rest of the details.

But since the share market has completely digitalized and you cannot keep physical shares now, it is quite challenging actually to do that.

Let us now look at the details.

How to Apply for IPO Without Demat Account

You can apply for IPO without a demat account, but that is an unmanageable process.

So, in one word it is important or let’s say mandatory to have a demat account to apply for IPO.

Wondering why?

A Demat account becomes a necessity because it is only when you have a demat account, that you will have a place where all your securities will be stored.

Also, SEBI has banned the physical transfer of shares.

So, technically a demat account provides security to your holdings and thus one should open it before applying for an IPO.

Since we now know that in a way it is very difficult to apply for an IPO without a demat account, let us look at how you can ease the process when you have a demat account.

You can easily open a demat account through a few simple steps and by keeping a few documents like:

• PAN card
• Aadhar card
• Bank Account details
• Signature

Let us now have a look at how to apply for an IPO.

How to Apply for IPO?

You need to open a demat account with the stockbroker to apply for an IPO. After you have successfully opened a demat account, you can apply for an IPO either online or offline.

If you are applying for an IPO offline, then you need to visit the nearest branch of your stockbroker or bank and fill in the necessary details in the ASBA e-Form which you can easily download from the NSE website.

Then, submit the cheque for the desired amount.

After the successful application of the IPO, the desired amount will be blocked in your account and unavailable for further use till the time of allotment of the IPO.

This method is called Application Supported Blocked Amount. In all, ASBA is mandatory for IPO. Now that we have briefly mentioned ASBA, let us have a detailed look at how you can use this facility to apply for an IPO.

How to Apply IPO through ASBA?

ASBA or Application Supported by Blocked Amount is a method that is used to apply for an IPO. In this, the desired amount is blocked in your account till the time the IPO is allotted.

If you want to apply for an IPO online you have to follow the given steps.

• Log in to your net banking portal or the portal of your stockbroker. Choice FinX has a different segment for IPO application that makes it very easy to apply for any IPO.
• Go to the IPO application segment.
• From the given list of IPOs, select the IPO that you want to apply for.
• Now in the application window, enter the quantity, price, and your UPI ID.
  
  

• Click on proceed.
• After this you will receive a mandate to block the desired amount in your bank account.
• On successful completion, that amount will be blocked in your account.

Remember that this amount is unblocked if you don’t get the allotment. It will only be debited if you get the IPO allotment.

Conclusion

Can I purchase an IPO without a demat account? The answer is yes. Although that is a time-consuming and complicated process. In addition to that, it is also not a very safe or legal way of doing that.

If you successfully want to apply for an IPO, you need a demat account so that you can receive the shares also if the IPO is allotted to you.

Open a demat account today and apply for an IPO easily with Choice!