To invest in an Initial Public Offering (IPO), individuals must meet certain eligibility criteria set by the Securities and Exchange Board of India (SEBI) and the issuer company. While there are no specific eligibility requirements for retail investors, institutional investors and high-net-worth individuals may have certain qualifications or restrictions imposed by SEBI or the issuer company.
IPO requirements
While there are no specific requirements for retail investors to participate in an IPO, they must have a Demat account with a registered depository participant and a bank account linked for electronic fund transfers. Institutional investors, such as mutual funds, insurance companies, and foreign institutional investors, may need to fulfil additional documentation and compliance requirements to invest in an IPO.
Who can invest in an IPO?
Generally, any individual or entity with a demat account and the necessary funds can invest in an IPO. This includes retail investors, high-net-worth individuals, institutional investors, foreign investors, and qualified institutional buyers. However, it's essential to review the offer document and comply with any eligibility criteria or requirements specified by the issuer company and regulatory authorities before investing in an IPO.
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