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SAS Online IPO Review

4.68% 13,027 Clients

SAS Online is Delhi based discount broker. They offer equity and commodity trading at BSE, NSE, and MCX. The company also offers Mutual Funds investment services through BSE Star MF platform.

Along with trading account, SAS Online offer a demat account. The demat account is linked with the trading account for seamless translations.

SAS Online offers both, flat brokerage and unlimited trading plans to its customers. Under the flat brokerage plan, a fee of ₹9/trade is charged regardless of the trade size. There are 3 unlimited trading plans, for each segment equity, commodity and currency. The monthly brokerage fee for equity and commodity is ₹999/month whereas it is ₹499/month for the currency segment. Customers can trade as much as they want under the unlimited trading plans.

Key Facts about SAS Online

Offers to trade at NSE, BSE, and MCX exchange
The depositary participant with NSDL
20,000+ customer since 2013 (as of Nov 2018)
Offers economical brokerage plans that promise to cut down trading costs by 90%
Offer 0% brokerage in monthly unlimited trading plan
Margin funding is available
Margin against shares are available
Advance order types i.e. BO, CO are available with higher leverage
Offer trading platform ALPHA built by Tradelab.

Initial Public Offer (IPO)

IPO is the process of selling of stocks of a privately held company to the public and it's listing at the exchange for the first time. A company takes the IPO route for many reasons like to raise funds, promote the brand, sell shares of its existing shareholders etc.

Privately held companies usually bring IPO to raise funds to repay their debts, meet corporate expenses or drive their expansion plans. PSU companies bring IPO to dilute Government shareholding by selling the stake to the public.

There are 2 types of IPOs issued in the market: Book Built and Fixed Price. In a Book Built IPO, investors have to bid price whereas in fixed price IPO the price is fixed by the company.

IPOs can also be categorized as Mainline and SME IPOs. The mainline IPOs gets listed on exchanges like BSE and NSE. The SME IPO Shares get listed in the SME exchanges of BSE or NSE.

SAS Online Customers - Apply in an IPO

SAS Online doesn't offer online IPO services to its customers. SAS Online customers can still apply in IPO using ASBA through net-banking of their existing bank.

Here are easy steps to apply for IPO through net banking:

Visit the website of the bank where you have an account.
Log in to your net-banking account.
Visit 'Online Investments -> Invest in IPO' section of the website.
Choose your bank account from which you would like to invest in IPO.
Confirm your customer detail for the IPO application.
Select the IPO you would like to apply for.
Provide your demat account information as below
- Depository = NSDL
- DP ID = IN306122
- DP Account = [Your Demat Account Number]
- DP Name = South Asian Stocks Ltd
Confirm the information and submit the application.

Note: The application money is not directly debited from the account but is blocked in your account till the allotment is done. You won't be able to withdraw this money but it will earn interest. The blocked money will only get debited from your account if shares are allocated to you. In case, you are not allotted shares, the money will be released after the allotment process.

Frequently Asked Questions

1. I have an account with SAS Online. Can I apply for an IPO?

No, SAS Online doesn't offer IPO application services. However, you can use the net banking services of your bank and get the shares, if allocated, credited to the SAS Online Demat account. The process to apply through net banking ASBA is discussed above.

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2. Why doesn't SAS Online offer IPO services?

Online discount brokers like SAS Online operate on a low margin business model wherein they run their operation on minimum infrastructure and manpower. To offer an IPO, a broker needs to get a license by paying a fee. There's also additional manpower required in running the process. Brokers get a small commission on IPO applications submitted with them. This makes it infeasible for them to offer IPO services.

Not only SAS Online, many other online brokers like Fyers, Zerodha, and Upstox etc., don't offer IPO services.

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3. What is a lot in an IPO with SAS Online?

You have to bid for IPOs in lots. A lot is the minimum number of shares an investor can bid for in an IPO. It is decided by the company as per SEBI guidelines.

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4. How do I sell the allocated IPO Shares with SAS Online?

Once the allotment process is over, a listing day is announced by the company. The shares are available for trading i.e. buying and selling from the listing day.

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5. Who can apply in SAS Online IPO's?
The eligibility requirements to apply for an IPO is:
- Be a QIB, NII or RII category investor as defined in the prospectus
- Have a Demat account
To apply for IPO via net banking ASBA, an investor must have a Savings or Current Account with net banking facility.
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6. What are the charges to be paid to apply IPO online with SAS Online?

There are no charges to pay for applying for an IPO.

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7. Can I apply in IPO's using SAS Online Mobile Trading App 'ALPHA Mobile'?

No, you cannot apply for an IPO using 'ALPHA Mobile'.

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8. Does SAS Online offer IPO services to NRI customers?

No, SAS Online currently doesn't offer any of its services including IPO to NRIs.

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