Using a family member's UPI ID or bank account for your IPO
In many families one person handles the money, so it is tempting to apply for everyone with the same UPI ID. For IPOs this is one of the most common reasons an application is rejected.
The rule: your own bank account
An IPO application must be paid from a bank account in the applicant's own name (as first holder), linked to the same PAN as the demat account. A UPI ID that belongs to a parent, spouse or child is a third-party payment, and such bids are rejected when the allotment is finalised.
What goes wrong
The bid may be accepted by the broker and the money may even be blocked, but the application is rejected later, and the family loses that chance of an allotment. The money is released, but only after the allotment.
Set each person up properly
Each adult applicant needs their own PAN, demat account and bank account with their own UPI ID (or net banking for ASBA). Joint bank accounts generally work when the applicant is the first holder. Each person approves their own UPI mandate on their own phone.
Managing it for the family
You can still help everyone apply: place the bids from each person's broker account and have them approve their own mandates. IPO Khata then keeps all the family's applications, blocked amounts and allotment results in one place.
Related guides
- The IPO UPI mandate, explained
- Can family members apply for the same IPO separately?
- Why IPO applications get rejected
More on applying for an ipo
- How to apply for an IPO in India
- What the cut-off price means in an IPO
- How to modify or cancel an IPO bid
- Applying for an IPO through net banking (ASBA)
- When to apply for an IPO
- Pre-applying for an IPO
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Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.