IPO Applications to be Rejected Immediately if Balance Lacks in Bank Accounts

When submitting an IPO application, you now will receive an instant confirmation regarding the availability of sufficient funds in your account. If your account lacks the required funds, the system will promptly notify you and cancel your IPO application.

With the approval of the API procedures of CDS and Clearing Limited (CDSC) by the SEBON, now the member banks of CDSC can connect to the API service. Even though the IPO was applied for through the C-ASBA system, it took time for the amount to be deposited in the bank account after its verification.

CDS and Clearing Limited's Information Officer Suresh Neupane said that with the approval of the  Board, the amount can now be withheld from the bank account of the applicant applying for the IPO in real-time through the API. CDSC sent the file to SEBON  for procedural approval about a year ago.

With the approval of the Board, the way to implement is open. It used to be the case that applications for IPO could be made even if there was no money in the bank account and during the IPO verification, if there was money in the bank account, it would be rejected, it would be verified at the same time whether the bank account of the applicant for IPO is there or not. According to CDSC, this will control false IPO applications.

Now the CDSC will also be able to charge a fee from the company or service provider that connects the API. Neupan said that the data will be available in real-time immediately after connecting the API.