It may happen for several reasons. Here are the most common ones:
- Oversubscription in the Retail Category: If the number of retail applicants is higher than the available number of lots, allotment is done via a lottery system. You may not be selected in the random draw.
- Application not in valid Lot size: Applications must be in minimum lot sizes (e.g. one lot of 30 shares). Applications with an invalid lot size could be rejected.
- Multiple Applications on the same PAN: Only one application per PAN is allowed in the retail category. Multiple applications with the same PAN (even through different broker accounts) will result in rejection.
- Payment failure or UPI Issues: If the UPI mandate was not approved / payment failed / not blocked in time, it will lead to rejection of the application.
- Incorrect detail in Application: Wrong PAN / Demat account number/bank details will result in rejection of the application.
- Rejection at Registrar level: Wrong Demat account number / Minor account without parents' PAN will lead to rejection of application
