Is there is any eligibility Criteria For IPO Application?

Created by Rushikesh borade, Modified on Mon, 26 Feb at 2:55 PM by Rushikesh borade

Eligibility criteria to apply for an IPO. Points you need to consider before investing:

1. As per SEBI (Securities & Exchange Board of India) Guidelines you must be an approved Investor. As per now there are four types of investor who can invest in an IPO’s, Qualified Institutional Buyer (QIB), Non-Institutional Buyer (NII), Retail Individual Investor, and Employees.

2. 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

3. You must link your bank account account to your Demat account

4. You must have a sufficient balance in your bank account to fund the application. The amount will be debited instantly and remain locked until you get the allotment. If you got the allotment share the amount will be transferred from your bank account to the company account and if you don't get the allotment than your locked amount will be release and you can you that amount for other purpose