Published on Tuesday, September 4, 2018 by Admin | Modified on Friday, November 23, 2018
IPOs are a craze these days with retail investors. One of the reasons for this high participation from retail investors in an IPO is the relative ease with which people can apply for an IPO. Anyone who has a bank account and a demat account can apply for an IPO online. And it can be done in a few minutes. Moreover, under the ASBA facility, the application amount is not debited but only marked as a lien which helps you earn interest on it.
This article aims to explain the process to buy IPO online in SBI bank.
SEBI has notified a list of banks through which a retail investor can apply online for any IPO. These banks are called SCSBs (Self Certified Syndicate Banks). State Bank of India (SBI) is one of the members of the SCSBs which allows its account holders to apply for an IPO online through SBI netbanking.
The process to apply for an IPO through SBI internet banking involves following 6 steps-
Enterwww.onlinesbi.com URL in your web browser. On the website, click on login on the personal banking section.
On the personal banking page click on "Continue to login"
On the login page, enter you netbanking User ID and Password
In your accounts page, click on the "e-services" tab
Now click on 'Demat and ASBA services' in the menu appearing on left side of your screen.
On the "Demat & ASBA Services" page, you will be presented with 3 sections- Demat Services, ASBA Services and Other Services. Under the "ASBA Services", click on "IPO Equity" and click on "Accept" after reading the terms and conditions.
The IPO Equity-ASBA page will provide you with a list of companies issuing IPO at that time with open and closing date of bidding. Select the IPO you wish to apply and click on "Accept".
The IPO page will have details on the IPO like minimum bidding quantity, price of each share, IPO open and closing date etc. It will also have a form wherein you need to enter applicant and IPO details.
The first detail you need to enter is category. You need to choose from individual, employees or shareholders.
The second detail to enter is the applicant. If you have added yourself as an applicant then select applicant name. Once the applicant is selected, other details like PAN and depository name will be automatically populated or filled.
Enter other IPO details like quantity, bid price etc. There is also a checkbox for "cut-off" price. This option is available for retail investors and is useful in book building issues where instead of a fixed price, a price range is provided by the company. Investors have to bid within the range. Ticking on "Cut-off price" means that you approve to accept the allotment at the price decided by the company. This saves you from the bidding race and ensures that you don't lose on allotment due to lower bidding price.
Enter the details and click on "submit".
Once you click on the submit, you will be taken to the "IPO Confirmation Page". This page will have the list of IPOs successfully applied. Check for the "Name of the Company" you applied for, Lien Marked Amount and Lien Marked Status.
If all details are OK then you have successfully applied for the IPO.
Eligibility- Who can apply for an IPO online through SBI Bank netbanking?
You can apply for an IPO through SBI, if you-
Yes, you can apply for an IPO online through SBI netbanking as SBI is a member of SSCBs (Self Certified Syndicate Banks). SSCBs are allowed by SEBI to accept online IPO applications from investors.
You can only edit details of an IPO which is currently open for bidding. To edit IPO details in SBI bank, take the following steps-
To add a new applicant for SBI ASBA facility, you need to-
SBI only provides facility to apply for an IPO online. Once you get the allotment then the shares will be credited to your demat account. You can sell the shares on the listing day or any day after that. Once the company is listed, the shares will be available for trading on NSE and BSE (for Mainline IPOs) and NSE EMERGE or BSESME for SME IPOs. You need to have a trading account to sell your shares bought through the IPO. The process to sell IPO shares is same as any other share.
No, SBI mobile app currently doesn't offer facility to apply for an IPO.
The blocked application amount is released on the next working day of finalization of allotment.
You can make one applications with three bids on that application.
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