A Joint Demat Account offers access to three account holders in Online Trading. When it comes to the IPO Stock Market, both husband and wife can access one joint Demat account to apply for the IPO, whether they own an account from the same bank, or not.
However, it is not permissible to apply for IPO offers from different bank accounts.
Is IPO Safe through Joint Demat Account?
Yes, IPO investment is a secured system for users who prefer to add a joint Demat account. An investor can apply for 5 IPO applications using one bank account.
Adding your wife is possible and safe in the joint Demat account.
Life Cycle of An IPO
There are eight stages in an IPO’s life cycle. Here is the list:
- Initialization of the IPO process
- Pre-Issue Role (Part 1) performed by Lead Manager
- Prospectus review by SEBI
- Phase 2 of the pre-issue role (part 2) is performed by the lead manager
- Bidding of investors is available while Public Issue Open is open.
- Price fixing
- Processing of application (includes registration)
- The lead manager decides all allocated shares as per the investor in the stock exchange.
Advantages of Join Demat Account
Having a joint Demat account only offers one benefit.
Each holder need not pay the annual maintenance charges distinctly.
How to apply for an IPO online?
- Log in to your online account (net banking or with the help of a broker)
- Find out the IPO option (tab in the browser).
- Find your bidding options by picking the lot size (or number of stocks)
- Fill up your UPI ID
- Wait for the mandate’s notification (which will be uploaded in the UPI app).
Link of IPO in SEBI
The process includes 7 important steps to come to the conclusion:
- Get in touch with an investment bank or underwriter
- Do the IPO registration
- Complete the verification (as per SEBI)
- Prepare an application to submit to the stock exchange
- Create a buzz
- Find the pricing of the IPO
- Allotment of shares
Is taking a loan possible through an IPO?
Yes, it is possible to apply for a loan for IPO investments.
Investors who fall short of sufficient funds can apply for loan options.
In the case of IPO loans, investors should make partial payments (a marginal amount) as per the number of shares.