How to use UPI ID to apply for IPOs - ​UPI as a payment options for IPOs (2024)

FAQs

How to use UPI ID to apply for IPOs - ​UPI as a payment options for IPOs? ›

Generate your UPI ID through your bank's net banking facility. Alternatively, download the mobile application of a verified third-party payment provider, link your bank account and create a UPI ID. Subscribe to the IPO through your Demat account and enter your UPI ID. Submit your IPO application online.

Generate your UPI ID through your bank's net banking facility. Alternatively, download the mobile application of a verified third-party payment provider, link your bank account and create a UPI ID. Subscribe to the IPO through your Demat account and enter your UPI ID. Submit your IPO application online.

How it works. You can apply for initial public offering (IPO) with your broker by providing your Google Pay Unified Payment Interface (UPI) id like xx@okaxis OR xx@okhdfcbank OR xx@okicici OR xx@oksbi. The broker enters your information in the Securities and Exchange Board of India (SEBI) interface.

This requires you to have to create a UPI ID and PIN using any of the UPI enabled mobile application. The UPI ID can be used for blocking of funds and making payment in the public issue process. You can accept the request to block the funds for the amount you have bid by entering your UPI PIN in the mobile application.

However, you must be an account holder in the bank account linked to the UPI ID you intend to use for IPO applications. Here's how you can apply for an IPO on Upstox. Keep in mind: In case you are not an account holder, you cannot use the UPI ID of a bank account of a friend or a family member.

In simple words if anyone applies in an IPO using their bank account but the Demat account is of another person (family/friends/relative) then the process is called 3rd party IPO application. To subscribe to an IPO via UPI, UPI ID and Demat account must belong to the same person; third-party payment is not acceptable.

UPI. An IPO application can be submitted through Zerodha from Kite web or Kite app using any UPI application. Visit npci.org.in/what-we-do/ipo/live-partners to know the supported UPI apps. There are no charges to apply for an IPO through Zerodha.

Sometimes investors do not receive the UPI mandate due to technical problems or server failure on the part of the bank. In certain cases, it takes about an hour before you receive a UPI mandate. If you still do not receive the mandate, resubmit the application.

Is UPI available in the USA? ›

From 30 April 2023, international mobile numbers from Malaysia, Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE, and the UK will be able to access the UPI transaction facility. It will be available through non-resident external (NRE) and non-resident ordinary (NRO) accounts.

Can I use other UPI ID for IPO application? You can use any UPI ID for IPO applications as long as the payment app/banking system is connected to NPCI to provide UPI IPO services. You can use your existing UPI ID or create a new UPI ID for an IPO application. Many payment apps allow you to create multiple UPI IDs.

Some banks (like SBI, Axis, BoB, IndusInd, and RBL) offer 3rd party IPO applications where you can apply in an IPO with different bank accounts. Though the bank account can be different, each applicant should have the Demat account and PAN card.

How does UPI mandate work? Under ASBA since customers are required to block an amount, the customer can enter their UPI details while applying for the IPO. This will send a mandate to the UPI app, all the customer has to do is accept this and the amount will be blocked.

Steps to apply in IPO through Paytm using the UPI:

Add the quantity and amount for bidding. Enter the UPI ID. Open your UPI app and approve the mandate.

Generate a UPI ID and MPIN for the bank account which is linked to your trading and Demat Account. Enter your credentials and login to your stock broking app, and navigate to IPO menu. Check essential details of an IPO like opening date, closing date, lot size and read the red draft herring prospectus carefully.

An IPO application can be submitted via net banking ASBA service offered by the bank, even without using UPI.