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New demat account for a different person using another person's savings bank account

Vasuki

TF Pioneer
Contributor
RML Group
VIP Lounge
Hi all

I am trying to invest in IPO. Since these days chances of getting allocation of lots in high demand stocks are less so I want to invest also by creating a new demat account in my mother's name and her PAN number to increase my chances for allocation of lots. Do I need to create a separate bank account number in her name to link it with the demat account and then transfer money in it? Or can I create a demat account in her name and link it with my bank's savings account?
Bank account of same name - same person - One pan card .
You are investing in name of your mom in Ipo
Nobody cares . Its her account, operator doesn't matter.

No you can't use other bank account of your mother other than registered with demat . Upi id transaction will be blocked

One person is alloted one ipo meaning one pan . No matter from how many demat you applied with.


No you can't link your bank account with mother demant simply won't happen.

Yes you need to open demant on her name + account on her name . Fund that account and invest .


N
ot any advice but caution - if u r newbie to Market. Don't invest in ipo . you might get lucky in 1-2 but u will loose money in many .
best way to learn is invest in Index fund & mutual fund & observe the market ..
AFter 1-2 yr u will know which stock to buy .
focus on long term holding.
you can't earn too much money in short term investment its always becomes a net loss overall. There is no shortcut to high return in short term .
 

Vasuki

TF Pioneer
Contributor
RML Group
VIP Lounge
No, you cannot do that. If name is not matched (upi bank account name and IPO applicant name) application will be rejected for sure.
Not Application upi transaction will be not successful too .
 

sherlock

TF Buzz
Bank account of same name - same person - One pan card .
You are investing in name of your mom in Ipo
Nobody cares . Its her account, operator doesn't matter.

No you can't use other bank account of your mother other than registered with demat . Upi id transaction will be blocked

One person is alloted one ipo meaning one pan . No matter from how many demat you applied with.


No you can't link your bank account with mother demant simply won't happen.

Yes you need to open demant on her name + account on her name . Fund that account and invest .


N
ot any advice but caution - if u r newbie to Market. Don't invest in ipo . you might get lucky in 1-2 but u will loose money in many .
best way to learn is invest in Index fund & mutual fund & observe the market ..
AFter 1-2 yr u will know which stock to buy .
focus on long term holding.
you can't earn too much money in short term investment its always becomes a net loss overall. There is no shortcut to high return in short term .
Regarding your caution, most high subscribed IPO's are generating very high gains/premiums these days considering you want to sell immediately after the listing, isn't it true?

I have seen even teenagers are investing in the IPO.
 
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Vasuki

TF Pioneer
Contributor
RML Group
VIP Lounge
Regarding your caution, most high subscribed IPO are generated very high gains/premium these days considering you want to sell immediately after the listing, isn't it true?

I have seen even teenagers are investing in the IPO.
Yes true they do . But those are short term gains u invest ,15k get 30-35 k ..
These doesn't translate into wealth
 

COSMOCRAT

TF Premier
I do have another demat account in my mother's name which is linked to her PAN and her bank account. However, I will be using my money/bank account/UPI ID to invest in the IPO using her demat account. Is that okay?
As far as I know, transactions between family members are considered gifts. So long as you pay proper tax on your earned income, it doesn't matter which family member you give money to later. So yes, you should be fine.
 
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