Apply for same IPO from two DMAT accounts?

satish_goteti · #1 15th December 2006, 09:55 AM

I have trading and DMAT accounts both in ICICI and Sharekhan. Is it allowed to apply for the same IPO from both the DMAT accounts? If so what are the implications?

Regards
Satish

saga364 · #2 15th December 2006, 07:43 PM

Hi,

From whatever limited knowledge I have of the markets, NO you can NOT apply to a IPO from two demat accounts.

Infact I also think that one person can not have more than one demat accounts. It is illegal and punishable by SEBI.

And you would also know that for your demat account you need to furnish the PAN Card before end of this year.

Regards,
http://pseudosocial.blogspot.com

aca_trader · #3 15th December 2006, 07:50 PM

Quote:

Originally Posted by saga364

Hi,

From whatever limited knowledge I have of the markets, NO you can NOT apply to a IPO from two demat accounts.

Infact I also think that one person can not have more than one demat accounts. It is illegal and punishable by SEBI.

And you would also know that for your demat account you need to furnish the PAN Card before end of this year.

Regards,
http://pseudosocial.blogspot.com

It's not illegal to have more than one Demat accounts.
But a plain reading of the definition of a retail investor will disqualify anybody from being classified as a retail investor if he applies from more than one demat accounts and crosses the limit specified for retail investors.

Best Regards,
--Ashish

satish_goteti · #4 16th December 2006, 02:57 PM

Calrification from both Sharekhan and ICICI and adding to what Ashish says.

You can have two DMAT accounts and it is perfectly legal.
You can apply for the same IPO From different DMAT accounts.

In case you apply for same IPO from different DMAT accounts, you still need to follow the principles of Retail and Non-Instititutional investor. The following are the rules around it.

1. You should have the same PAN card in Both the DMAT accounts.
2. If your total bid for the IPO from any of the DMAT accounts cross 50000/- a PAN card is necessary.
3. If your total bid amount for the IPO from one or both of DMAT accoutns crossses 100000 (1 LAKH) you are no longer considered as retail and your allocation will be dependent on Non-Institutional investor quota.

Hope this helps all.

Regards
Satish Goteti

amitdamodar · #5 29th December 2006, 04:33 PM

Hi,

This really helps, I also have a query.

If i have two demat accounts, One is single and other one is Joint where i'm primary holder. In this situation also, if i apply for a IPO with appliction money as 1 lack Rs from both the accounts (Single and Joint -where i'm primary), Am i still considered as a retail investor ?

Please answer, this will greatly help, as i have more funds but less account and still want to be a retail investor.

Regards,
Manish Gupta

aca_trader · #6 30th December 2006, 12:21 AM

Quote:

Originally Posted by amitdamodar

Hi,

This really helps, I also have a query.

If i have two demat accounts, One is single and other one is Joint where i'm primary holder. In this situation also, if i apply for a IPO with appliction money as 1 lack Rs from both the accounts (Single and Joint -where i'm primary), Am i still considered as a retail investor ?

Please answer, this will greatly help, as i have more funds but less account and still want to be a retail investor.

Regards,
Manish Gupta

Strictly speacking, both the accounts application would be merged together towards counting the quota.

So, is not it the time to be generous and distribute ur wealth among relatives so that they can also get cheap shares via IPO route?

Best Regards,
--Ashish

umeshpune · #7 30th December 2006, 03:34 PM

Quote:

Originally Posted by satish_goteti

I have trading and DMAT accounts both in ICICI and Sharekhan. Is it allowed to apply for the same IPO from both the DMAT accounts? If so what are the implications?

Regards
Satish

I had this query long time back, an individual cannot apply in a IPO of a same company through 2 different DMAT accounts, it is considered illegal and treated as multiple application which is liable to be rejected, the exception to the rule is, one is in the name of individual and another is from HUF account.

I remember the CCI days, where people use to apply in hundreds of different names and encash the refunds in one bank account, the banks in these case generally were the cooperative ones to whom only bank account no. really mattered, they were least bothered about the names on the cheque

aca_trader · #8 30th December 2006, 09:09 PM

Quote:

Originally Posted by umeshpune

I had this query long time back, an individual cannot apply in a IPO of a same company through 2 different DMAT accounts, it is considered illegal and treated as multiple application which is liable to be rejected, the exception to the rule is, one is in the name of individual and another is from HUF account.

Can you please enlighten as how it's illegal to apply in a IPO through two demat accounts?
Further, As per the DIP guidelines, the quota applies to Retail Individual Investors; hence, whether HUF applications would be considered as Retail Individual Investors.

Best Regards,
--Ashish

Similar Threads for: Apply for same IPO from two DMAT accounts?
Thread	Thread Starter	Forum	Replies	Last Post
opening dmat account, choosing the DP	sudhirbh	Introductions	5	22nd April 2008 12:08 AM
Sharekhan Accounts	tidelganesh	Brokers & Demat Matters	0	20th November 2006 02:46 PM
How to apply to become data vendor	amarnath	Intraday	0	29th November 2005 05:44 PM
Rights Issue - Hindalco.. how to apply?	s77	Initial Public Offers (IPO's)	12	26th November 2005 10:45 PM
Can any one have more then one demat accounts?	sadiq007	Brokers & Demat Matters	3	3rd October 2005 07:21 PM