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Initial PublicOffer (IPO) Process

Where can an investor get a form for applying/ bidding for the shares?
The form for applying/bidding of shares is available with all syndicate members, collection centers, the brokers to the issue and the bankers to the issue. These are also available with your friendly neighborhood news paper vendors and sub brokers.

How are offer documents prepared?

The offer documents such as prospectus etc. are prepared by an independent entity know as Merchant Banker, which is registered with regulatory authority SEBI. They are required to carry out due diligence while preparing an offer document. The draft offer document submitted to SEBI is put on website for public comments.

Is it compulsory for an investor to have a Demat Account?

All the public issues of size in excess of Rs.10 crore, are to made compulsorily in the demat more. Thus, if an investor chooses to apply for an issue that is being made in a compulsory demat mode, he has to have a demat account and has the responsibility to put the correct DP ID and Client ID details in the bid/application forms. This is very important as a lot of applications are rejected due to carelessness in putting right details in the application forms. You can open a DP account with any of the registered DPs and quote your BO/Client ID in the application.

Do I need to mention Bank Account Details in the application?

In case of refund of application money in case of non allotment of shares or partial allotment of shares, it is advisable to have funds directly credited to your bank accounts to avoid postal delays and frauds. Hence mention of your bank account details on applications has been made applicable for investors for their own convenience.

For How many days are IPOs open.

IPOs are open for a minimum of 3 working days and maximum of 10 working days. In case of Book Building issues, the period during which you can make an application is 3 to 7 working days.

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