What do you need to apply for an IPO?

Created by Rushikesh borade, Modified on Mon, 26 Feb at 2:22 PM by Rushikesh borade

It is essential to have a Demat account to invest in IPOs. In this account all your shares will be stored after allotment.
It is mandatory to have a trading account before applying for an IPO online. You can open your trading account with any of the SEBI certified Depository Participant, like Pocketful
You can use your existing UPI ID linked to that bank account or simply create a UPI ID in the BHIM app.
You need a bank account to pay the shares applied. Previously the amount was debited from the bank account according to your bid for the shares. Later, the amount is credited to your bank account according to the number of shares allotted to you. So, SEBI formulated ASBA (Application Supported by Blocked Amounts) to simplify the payment procedure. By ASBA some amount of money is blocked depending on the number of shares you bid after the allotment cash is debited from your bank account. If you get fewer share that you bid for than the rest of the amount is unblocked