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Who is eligible to invest in an IPO?

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Technically speaking, any adult who is competent to enter into a legal contract is eligible to apply in the IPO of a company. Of course, it is essential that you have a PAN card issued by the Income Tax department and you also have a valid demat account.Remember, having a trading account is not necessary in case of IPOs, a demat account alone is sufficient. However, if you want to sell the shares on listing then trading account will be required. That is why brokers will advise you to open a trading account along with demat account when you apply for an IPO for the first time. An important point to be remembered here! When you apply for an IPO, it is not an offer but an invitation to offer. Only when the IPO issuer offers you shares, it amounts to an offer.

Comments

  1. pallaviFebruary 15, 2020 at 11:32 AM

    Nice Article. Thank you for sharing the informative article with us.
    This post is helpful to many people. stockinvestor.in is a stock related website which provides all stocks related information like new stocks and shares available in the stock market.
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    ReplyDelete
  2. Phani KumarJune 11, 2020 at 4:30 PM

    Thanks, This post is good. Your posts are helpful and provide valuable information. SM Auto IPO.

    ReplyDelete

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