SEBI regulations allow an individual to submit only one IPO application per issue using their PAN card, regardless of how many demat accounts they hold.
Attempts to apply for the same IPO from two or more demat accounts with the same PAN may result in both applications may rejected.
How IPO Allotment Works for Multiple Demat Accounts
Even though a person can own multiple demat accounts for portfolio diversification, the IPO system checks PAN card and ensures that only one application per issue, per PAN is considered during the share allotment process.
All applications with duplicate PAN details are flagged for rejection to prevent manipulation in the allotment process.
Family Members: Increasing Chances Legally
If different family members have separate demat accounts and PAN cards, each member can submit one IPO application for the same issue, which is a legal and common way to improve chances of allotment.
To understand how the process works in competitive scenarios, review our explanation of IPO allotment in oversubscribed issues.
Take advantage of family accounts to apply in upcoming IPOs whenever a new opportunity fits your portfolio. Applications through spouse, parents, or children, permitted as long as each account linked to a unique PAN.
Risks of Violating PAN Restriction
Submitting more than one IPO application with the same PAN, whether from two demat accounts or not, can result in complete rejection, forfeiture of application funds, and possible penalties.
Discover more common reasons for IPO allotment rejection that every applicant should be aware of. If a rejection occurs, use dedicated resources to track IPO refund status and ensure your money returned promptly.
Joint Accounts and HUF Applications
Joint demat accounts should only use for one applicant per PAN.
HUFs (Hindu Undivided Families) and companies with independent PANs can apply for IPOs in addition to individual family members, but every submission must use a unique PAN.
How to Boost IPO Allotment Chances Legally
- Apply via accounts of family members, not by duplicating your PAN.
- Ensure correct KYC and PAN linking in each demat account, and for smoother participation and prevention of errors, use the ASBA application process as mandated by SEBI regulations.
- Do not attempt to submit extra applications from one PAN, this may flagged and rejected.
Common Mistakes to Avoid for IPO Allotment Chances
- Applying more than once per IPO per PAN.
- Using friends’ or family PAN details without consent (illegal and may lead to legal action).
- Neglecting to check PAN linkage while submitting applications.
Conclusion: You cannot apply for IPO from two demat accounts using the same PAN, but you can increase chances of allotment by having different family members apply from separate accounts and PANs always follow SEBI rules for smooth IPO participation.
Apply for IPO from two demat account only if each account belongs to a unique PAN holder to avoid rejection and regulatory trouble.
