RailTel Corporation of India Limited IPO Message Board (Page 28)

When SEBI introduced ASBA online IPO process, they asked all banks to provide this facility including third party applications. Its no longer allowed now. Some banks are still allowing third party applications, but rejections are common.

I usually apply with 5 Demat accounts through my Indusind bank account, and i was allotted IPOs in Indigo and Mazdock(in my relatives Demat ID), also there is another Circular saying the old ASBA method is allowed(multiple accounts), Dont know which one is true...

If it wasn''t allowed then banks would have removed the feature asap, also cause of rejection could also be improperly filled demat details, wrong bid details,etc.
Moral of the issue.. People can make mistake while filling up application which is the cause of rejection.
Also people might misunderstand no allotment with rejection.

If you receive email from your bank of bid confirmation, then enjoy and wait for allotment..
3rd party is legitimate and allowed.

Chittorgarh team and many members opined that 3rd party application is permitted by some banks. As per SEBI regulations 3rd party applications are not permitted both in ASBA and UPI. Few members posted relevant notice. On verifying, banks provided linking of multiple Dmat accounts belonging to accountholder with same PAN number. This is not intended to link Dmat accounts not belonging to account holders. This facility is being misused by linking others Dmat accounts.

To implement the regulation both Registrars and banks are responsible. Many private sector banks now allow only accountholders Dmat. PSU banks also are changing. Recently , BOB changed software to implement this by restricting linking multiple Dmat accounts with PAN number of accountholder prefilled. Other PSU banks too will be following suit. Some registrars too are rejecting 3rd party applications.

Till that time one can enjoy linking 3rd party Dmat. After this change by all banks, each one need to apply from his/her own bank account.

I think hearing multiple people , i think some IPO''s follows and some don''t . Eg : in Bectorfood i got below message from authorities :

In the Issue, Investors can make payment only using bank account held in their own name. Since you have apply through third party account, hence your application has been rejected under reason "THIRD PARTY APPLICATION"

PS: Anyone in Bectorfood got allotment with 3rd part account let me know!!

Regarding no of application per account, I think sebi should continue with the practise of five application per account. Reason is, a family comprise minimum four member and they have genuine right to file application from one account. As India is a developing country, restricting it to one will impose cost on, not so tech savvy. Restricting to one will do injustice to lot of people and retail participation will be constricted. At least in nearby future, condition of one will be wholly unjustified.

We all will cry together but let the allotment happen first.

Thank you @eagleye madam

Thank you. Hope it lists and stays above 110 and don''t ditch like IRFC