Several members here often raised queries on 3rd party applications. SEBI seems to have taken up the issue of 3rd party applications seriously in the interest of small investors. Circulars dated 19th August 2023 enclosed.
Clauses 5 & 6 state that, henceforth banks will give complete bank account number and linked PAN number and upload. Registrars will match each application PAN with Demat PAN and discard unmatched applications as invalid. The activity chart further mentions that registrar will match day wise applications in ASBA & UPI to remove all 3rd party applications before nest day 9.30 AM to forward only valid applications for allotment.
BSE in yesterday's circular has arranged mock IPO sessions on 16th September 2023 for all banks to check and upload account number with PAN, wherein registrars too participate to verify the system efficacy.
By invalidating 3rd party applications, honest retail investors with limited resources will benefit.
Happy Investing!