Is PAN Card Necessary for IPO?

Yes, you generally need a PAN to apply for an IPO in India. An IPO application without the required PAN details may be rejected.

• PAN is a 10-character alphanumeric number issued by the Income Tax Department.
• Your PAN helps identify you while processing an IPO application.
• PAN details are also linked with your demat account and other securities-market transactions.
• IPO applications can be made through ASBA, including eligible UPI-based applications.
• Under the current framework, shares in a public issue are listed within T+3 working days, where T is the IPO closing date.

• You should check your PAN details carefully before submitting an IPO application because incorrect details may lead to rejection.

  
  
  

An initial public offering (IPO) is when a company offers its shares to the public for the first time. This allows the company to raise money from public investors.
The IPO process includes deciding the number of shares being offered and their price or price range.
When you participate in an IPO, you apply for shares during the issue period. If shares are allotted to you, they are credited to your demat account and can be traded after the company is listed.
 

A Permanent Account Number, or PAN, is a unique 10-character alphanumeric number issued by the Indian Income Tax Department to individuals, firms, and other entities.
PAN is used to identify and track certain financial and tax-related transactions. It is commonly required for activities such as filing income tax returns and participating in securities-market transactions.
For example, when you apply for an IPO, your PAN helps match your application with the details linked to your demat account.
 

Yes, PAN details are generally mandatory when you apply for an IPO in India. SEBI requirements provide for PAN to be furnished for securities-market transactions, and IPO application documents state that applications without PAN can be rejected, subject to applicable exemptions.
Your PAN is also important because securities allotted through an IPO are held in demat form. PAN is required for operating a beneficiary owner account in the depository system.
For example, if the PAN entered in your IPO application does not match the details associated with your demat account, the application may face verification issues or technical rejection.
Before submitting an application, therefore, check that your PAN and demat account details have been entered correctly.
 

Your PAN helps identify you when you apply for an IPO and allows the details in your application to be checked against your demat account information.
PAN is used as part of securities-market identification and verification requirements. The registrar can use information such as your PAN, DP ID, and Client ID while processing allotment and checking applications.
For example, suppose two applications contain similar names. The PAN and demat account details help identify the correct applicant and associated account.
A PAN is similarly relevant when applying for SME IPOs, because these are also public issues of securities.
Therefore, if you plan to participate in an IPO, you should make sure the PAN entered in your application matches the details associated with your demat account.
 

Your PAN is one of the details used while submitting an IPO application. SEBI currently allows IPO applications through ASBA, including UPI as a payment mechanism for eligible investors. Under ASBA, the application amount remains blocked in your bank account until allotment instead of being transferred immediately.

A simplified process is:

1. Access the IPO application facility offered by your eligible intermediary or bank.
2. Select the IPO you want to apply for.
3. Enter the required application and bid details.
4. Provide your PAN and the required demat account information accurately.
5. Enter your payment details or eligible UPI ID, depending on the application method.
6. Submit your IPO application.
7. Authorise the blocking of the application amount when required.

8. Check that the submitted PAN and demat details are correct.

   
   

With ASBA, the relevant application amount stays blocked in your bank account until the allotment process is completed. If shares are allotted, the required amount is debited.

You can use your PAN to check the allotment status of an IPO after the allotment process is completed. IPO bid or allotment information may be available through the relevant market infrastructure or the registrar handling the particular issue. SEBI also provides links to facilities for verifying IPO bid or allotment details.

When an allotment-status facility allows PAN-based lookup, the basic process is:

1. Open the relevant IPO allotment-status facility.
2. Select the IPO, if required.
3. Enter your PAN number.
4. Submit the details.

5. Review whether shares have been allotted to you.

   
   

The statement that allotment is normally completed within 24 hours of an IPO closing is outdated. Under the current SEBI framework, the overall public-issue process follows a T+3 working-day listing timeline, where T is the issue closing date.

A PAN is generally necessary when you apply for an IPO in India. It helps identify you and allows your IPO application details to be matched with information associated with your demat account.
Before submitting an application, check that your PAN has been entered correctly. Missing or incorrect PAN information can result in an IPO application being rejected, subject to applicable exemptions.