How to apply for IPO using UPI - Check limit, steps and other details
Once you apply for an IPO, the application amount is blocked in your account until the allotment date.
UPI (Unified Payments Interface) is widely used to transfer money on a daily basis. Whether paying bills or sending money, UPI is very beneficial for all of us. Now, UPI can be used by traders to buy IPO. Now, the Security Exchange Board of Directors (SEBI) has made mandatory UPI for all the applications through registered stockbrokers, RTA’s (Registrar and transfer agents), and DPS (depository participants). Trades can apply for an IPO through UPI.
Once you apply for an IPO, the application amount is blocked in your account until the allotment date. If the IPO is allotted to you, the money gets deducted from your account, and the shares get transferred to your Demat account. However, if you do not get the IPO, the blocked money is released by the bank. It is advised by SEBI to have a Demat account before applying for an IPO.
UPI IPO limit
SEBI revised the limits for Unified Payment Interface (UPI) in IPOs by Rs 5 lakh.
Flipkart Big Billion Days Sale 2023: Check heavy discounts on Xiaomi, Samsung, Motorola, Vivo and more phones
Traders' Diary: Buy, sell or hold strategy on Nykaa, SBI Life, Wipro, DMart, Bata, over a dozen other stocks today
In the quarter century of Amrit Kaal, it would be logical that India also seek to be a global power: Minister S Jaishankar
India Vs Australia LIVE Score, 3rd ODI Match Updates, IND VS AUS live Scorecard: Rohit Sharma's men eye clean sweep against struggling Aussies at Rajkot
How to create a UPI ID for buying an IPO
Step 1: Download the Payment Service Provider app like Paytm, PhonePe, and GPay.
Step 2: Enter the phone number affiliated with your bank account.
Step 3: Select a password and the bank to which you want to link it.
Step 4: Fill in the details and create a pin for future transactions.
How to apply IPO using UPI
Step 1: Register for UPI on Paytm and Google Pay and link your bank account.
Step 2: Enter your UPI ID on the IPO application form and submit it
Step 3: You will get a fund block request on the Google Pay app
Step 4: Approve the request on Paytm, Google Pay App to block the amount for the IPO
Step 5: The funds will be blocked in your bank account until allotment when it is debited.
Step 6: On allotment of the shares, the money will be automatically debited from this blocked amount.
Step 7: If the shares have not been allotted to you, the blocked funds will be unblocked on the end date or expiry date of the mandate.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.