How to Meet the IPO Eligibility Criteria?

To invest in an IPO in India, you need to meet a few basic requirements. Here’s a simple guide to make sure you’re eligible:

1. Open a Demat and Trading Account

First, open a Demat and trading account with a registered broker. These accounts are necessary to hold shares and trade stocks. Without them, you cannot apply for an IPO. If you do not have one, you can open a free Demat account with Findoc.

2. Be 18 Years or Older

You must be at least 18 years old to invest in an IPO. This is a legal requirement for all investors. If you are under 18, you would not be eligible to apply for IPO.

3. Have a Valid PAN Card

A PAN card is mandatory for investing in an IPO. It helps track your financial transactions. Make sure your PAN is active and linked to your Demat account before applying.

4. Bank Account with UPI for Retail Investors

Retail investors need a bank account with UPI (Unified Payments Interface) functionality. UPI is used to block the funds required for an IPO application, making the process quicker and easier.

5. Meet Financial Criteria for Some IPOs

Some IPOs may have financial eligibility requirements, especially for High Net-Worth Individuals (HNIs). This could involve a certain income level or net worth. Check the specific IPO details to see if you meet these requirements.

6. Resident or Non-Resident Indian (NRI)

Both Resident Indians and NRIs can invest in IPOs. NRIs must use NRO (Non-Resident Ordinary) or NRE (Non-Resident External) accounts. Make sure you meet the NRI criteria if applicable.

By meeting these requirements, you will be ready to apply for IPO and take advantage of new investment opportunities. Start your IPO journey today by opening a free Demat account with Findoc!