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To apply for an IPO in India, submit a bid through a route permitted for your investor category and the live issue, then ensure the application amount is successfully blocked. With bank ASBA, you instruct an eligible bank to block the amount. With UPI, eligible individual applicants submit through an authorized intermediary and accept a mandate request in their own UPI app. A bid submitted without a required, successful UPI mandate may not be complete.
ASBA and UPI: what happens to your money
ASBA stands for Application Supported by Blocked Amount. The bank blocks the amount corresponding to your bid in your account while the application is processed; it is not transferred as an upfront payment. The blocked amount continues to earn interest. If shares are allotted, the amount due is debited; the balance is released. If you receive no allotment, the block is released without a refund transfer. See SEBI’s ASBA guidance.
UPI is a way for eligible individual applicants to authorize the block as part of the ASBA process. You enter your own UPI ID while applying through an authorized intermediary, receive a mandate request, accept it, and authorize the block using your UPI PIN. You must also check that the block succeeded. The bid submission alone is not enough. SEBI’s FAQ on public issues explains the available channels; the issue’s live offer document sets its applicable instructions and deadlines.
Choose a permitted application route
| Route | Where you apply | How the block is authorized | What to check |
|---|---|---|---|
| Bank ASBA | Through an eligible Self-Certified Syndicate Bank (SCSB), using a physical or online facility supported by that bank | By giving the bank ASBA instructions | Confirm the bank and channel are eligible for the issue and your category |
| UPI through an intermediary | Through an authorized syndicate member, registered stockbroker, registrar and transfer agent, or depository participant; supported online facilities may also be available | Accept the sponsor-bank mandate in your UPI app and authorize it with your UPI PIN | Confirm your category and application amount qualify, the intermediary is authorized, and the block succeeds |
| Linked 3-in-1 account | Through a bank/broker that offers this facility | As provided by that bank/broker’s linked application process | Check that the facility is available for this issue and your application |
Which routes you can use depends on your investor category, application amount, intermediary and the particular IPO. Do not assume a specific broker, app or bank is supported for every issue. Check the current SEBI eligibility information and the issue’s offer document. SEBI’s public-issue FAQ describes the channels, while its UPI investor guidance covers the UPI mechanism.
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Who can apply using UPI, and what is the limit?
SEBI investor guidance states a limit of ₹5 lakh per transaction for UPI applications and describes the mechanism for eligible individual investors. This is a per-transaction rule, not a guarantee that every individual, intermediary or issue can use UPI for every application. Check the current offer document for category-specific eligibility and permitted channels. Apply using your own bank account and the UPI ID linked to it; a third party’s account or UPI ID can cause rejection.
How to apply, step by step
- Check the live issue terms. Read the offer document and the relevant exchange issue page. Confirm the bidding dates, your investor category, minimum or lot application, price options (including whether a cut-off option is available), accepted application channels, and the UPI mandate deadline if you use UPI. Issue dates and cutoffs are issue-specific; for example, NSE’s issue information lists data by issue rather than establishing one universal mandate cutoff.
- Make sure your application details match. Have the applicant’s correct PAN and active demat account details ready. Check the name and identifiers against the depository record and ensure the account can receive shares in demat form. SEBI’s IPO investor checklist covers these preparation points.
- Select an allowed route. Use bank ASBA through an eligible SCSB, or apply using UPI through an authorized intermediary if your category and application qualify. Use the applicant’s own bank account and, for UPI, the UPI ID linked to that account.
- Enter and submit your bid. Follow the intermediary or bank’s process, enter the required bid details, and submit before the issue closes. Ensure enough available funds are in the account to cover the amount to be blocked.
- Accept the UPI mandate, if applicable. Watch the correct UPI app for the sponsor-bank request. Accept it within the window specified for the issue and authorize the block with your UPI PIN. Then check the app or account to confirm the amount was blocked. A missed or unsuccessful mandate can leave the application incomplete.
- Keep the acknowledgement and check status. Save the application acknowledgement. Use the status tools made available by the intermediary or exchange for that issue to check that the bid and, where relevant, mandate have been recorded.
Common mistakes that can invalidate or leave an application incomplete
- Using someone else’s payment details: a third party’s bank account or UPI ID may lead to rejection.
- Entering mismatched identifiers: an incorrect PAN, demat detail or UPI ID can prevent the application or mandate from matching the applicant’s records.
- Choosing an unsupported channel: an app, intermediary, bank or UPI handle is not automatically valid for every IPO. Confirm that the route is permitted for the issue.
- Not having enough available funds: the bank cannot make the required block if the account lacks sufficient available balance.
- Stopping after bid submission: if you applied through UPI, you still need to accept the mandate and confirm the block before the issue’s deadline.
- Relying on a generic cutoff: mandate deadlines vary by issue. Use the live issue details rather than assuming a standard time.
Neither ASBA nor UPI guarantees an allotment. These are application and payment-blocking mechanisms; allotment depends on the issue’s process and demand.
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