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3rd Party IPO Application: Multiple Applications from one Bank Account

Published on Tuesday, September 14, 2021 by Chittorgarh.com Team | Modified on Tuesday, July 19, 2022

3rd Party IPO Application: Multiple Applications from one Bank Account

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:

  1. Login to Net Banking.
  2. Go to the IPO section.
  3. Select the desired IPO for application.
  4. Select category of application - Retail or HNI.
  5. Select the applicants or add new applicants.
  6. Verify prefilled information. (Demat account, PAN, email id, etc.)
  7. Enter the bid details - Lots/Quantity and bid price.
  8. Check the applicant's details and confirm.
  9. 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.

Frequently Asked Questions

  1. 1. How many IPO applications are allowed from one bank account?

    Most banks allow only one online IPO application from a bank account. But some banks such as SBI and Axis Bank allow up to 5 IPO applications from one bank account. This process is called a third-party IPO application facility.

    Note:

    • Only one IPO application per bank account is allowed when using UPI as a payment gateway. Brokers like Zerodha, Upstox, and Angel offer only 1 IPO application per bank account.
    • Only a few banks like SBI, Bank of Baroda, RBL, Axis, and IndusInd Bank offer five applications from 1 bank account.
    • In 3rd party IPO application, all the applicants must have PAN cards and Demat accounts.
    • Online IPO applications for Minor and HUF accounts are possible only through banks offering 3rd party IPO applications.

     

  2. 2. Can I apply for IPO from multiple accounts?

    No, only one IPO application is allowed per person across all investor categories in an IPO.

    If you apply for multiple IPO applications in the same name, all applications get rejected. You cannot submit one bid in the Retail category and another in HNI, employee, or shareholders category.

     

  3. 3. How to apply for multiple IPO applications?

    You can apply for multiple IPO applications using 3rd party IPO application facility. Though you can apply for up to 5 IPO applications, you cannot apply for more than one IPO application in one name.

    Banks like SBI, Axis, Bank of Baroda, IndusInd, and RBL offer 3rd Party IPO applications. You can apply in up to 5 IPO applications using one bank account with these banks. If you have a bank account in any of these banks, you could apply multiple IPO applications in the name of a family member or friend, as long as they have their Demat account and PAN number.

    The 3rd Party IPO application is the only online mode for applying IPOs for Minor and HUF accounts.

    You cannot apply for multiple IPO applications if you do not have a bank account with either of the above banks offering the 3rd Party IPO application feature.

     

  4. 4. Can I apply for IPO from two different accounts with one bank account ASBA?

    Yes, you can apply from two different accounts with one ASBA bank account using 3rd party IPO application facility provided:

    1. You have an account with the bank providing 3rd party IPO application facility. (SBI, Axis, Bank of Baroda, RBL, and IndusInd)
    2. The applicant has the Demat account and PAN of its own as one person can apply only 1 IPO application in an IPO across all investor categories.

     

  5. 5. Can I apply for IPO with a different bank account?

    Some banks (like SBI, Axis, BoB, IndusInd, and RBL) offer 3rd party IPO applications where you can apply in an IPO with different bank accounts. Though the bank account can be different, each applicant should have the Demat account and PAN card. One person can apply only once for an IPO application across all investor categories.

    You can use these bank accounts to apply for IPO shares in Minor, HUF, friends, or family member's Demat accounts.

    Many banks (like HDFC, ICICI, Kotak, Yes Bank, and PNB) offer only one IPO application per bank account, where Demat and bank account should belong to the same person.

     

  6. 6. Why do a few 3rd Party UPI IPO applications get an allotment?

    As per the regulation, the funds for IPO applications should come from the bank account linked to the demat account used for the IPO application.

    The stock exchanges along with the registrar and banks are responsible to validate this information.

    Process of validating 3rd Party Bank Account in IPO Application

    Following is the process stock exchanges, registrars, and banks follow to find the 3rd Party bank accounts used in the IPO application:

    1. Once the public issue closes, the exchange sends the IPO application file to all the banks to take the confirmation that the bank account linked in the demat account is the same used in the IPO application.
    2. Banks get only a day to revert. There are lakhs of records to validate.
    3. Some banks revert with the confirmation of whether the account numbers match or not.
    4. Exchange put a flag (Valid or 3rd Party) and sends it to the registrar.
    5. The registrar rejects all IPO applications which are flagged as 3rd party.
    6. In some cases, the 3rd party flag comes as empty from the exchange. It happens in the case where a few banks do not respond in the given time. These are the records that are neither rejected nor accepted by the bank.
    7. The registrar sends the file with pending records to the banks again and waits for one more day. Registrar gets a few confirmations. Some banks still do not respond in time.
    8. If confirmation is not received from banks, the benefit of the doubt is given to the IPO applicant. This is because banks are supposed to own this. No one else can confirm if the information is correct or not.
    9. Wherever such confirmations do not come, by default those applications cannot be rejected, hence they are considered for allotment.

    It's a wrong thing that these people are getting allotments but there is no way to check because banks are the only agency that can check the account number.

    Banks are not able to handle the load of validating lakhs of IPO application data for every IPO in a short period. Thus they don't send the confirmation and in the process, some people are getting benefited.

    As per the registrar, a few applications fall under the category of 'not-validated 3rd party bank account'. They are not ready to share the actual percentage of these applications.

     

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3 Comments

3. krishna   I Like It. |Report Abuse|  Link|Oct 13, 2022 1:25:51 PMReply
wrong information union bank RBL bank still allowing
2. Adit   I Like It. |Report Abuse|  Link|Apr 29, 2022 10:05:22 AMReply
so first we will apply for 1st person
then for 2nd person do we have to repeat hole process or we can add all in one application ?
1. Shekhar Kumar   I Like It. |Report Abuse|  Link|Jan 28, 2022 8:01:11 AMReply
Bank of Baroda has lately restricted 3rd party application? Are IndusInd bank and RBL Bank still allowing 3rd party applications?
1.1. Manish   I Like It. |Report Abuse|  Link|Mar 27, 2022 10:12:10 AM
I don't know about bob but i am using union Bank net banking. It is allowing 3rd party ipo application.