All about 3rd Party IPO Application: Avoid Multiple Applications from one Bank Account | Best method to avoid rejections

Applying IPOs but not getting allotment, other than poor luck you might be using outdated process and methods. One of them is 3rd party IPO Application, which is applying through demat account but blocking money in bank account having other PAN card number.

Effective December 1, 2023, Indian banks have permanently discontinued offering 3rd Party ASBA IPO applications.
Going forward, it is imperative that the PAN number of the primary account holder in both the Bank Account and Demat Account matches for IPO applications only to be considered valid.

What to do of 3rd Party IPO Application?

Simple answer, try to not apply 3rd party ipo application without talking to your bank as it might be outrightly rejected during Basis Of Allotment, check below post to know more about how IPO allotment is decided and best methods to apply IPOs.

Click here, to find the SEBI process behind IPO allotments and how to better your chances.

Understanding 3rd Party IPO Application:

The 3rd Party IPO application, a convenient service, enabled investors to submit multiple IPO applications within a single IPO from a single bank account using Net banking facilities. Notably, once used to apply for up to 5 IPO applications using a single bank account.

It’s important to note that this facility was offered by select banks such as SBI, Bank of Baroda, RBL, Axis, and IndusInd Bank. Where investors can submit upto 5 IPO applications from one bank account, each applicant must possess their PAN card and Demat account. Moreover, payments for IPO applications are only accepted through the ASBA account, with UPI payments not applicable.

The 3rd party IPO application served as the sole method for applying in an IPO in the name of a Minor or HUF. Nevertheless, the bank account holder must be either the guardian of the Minor or the Karta of the HUF, depending on the specific circumstance.

Note: Third party IPO ASBA applications last seen as working for some banks too like in IREDA IPO in late November 2023.
So please always check with your bank.

This update aims to provide clarity on the evolving landscape of IPO applications and the changes in banking regulations, ensuring a smooth and informed process for all investors.

Advantages of 3rd Party IPO Application:

• Apply for as many as 5 IPOs using a single bank account.
• Extend the convenience of IPO application to your family and friends through the same bank account.
• The exclusive online method for IPO application on behalf of a minor or Hindu Undivided Family (HUF).

Important Considerations:

• The applicant must have their Demat account and PAN.
• Payments can exclusively be made through the ASBA account.