InvestorQ : Who is eligible to invest in an IPO and are there any restrictions?
Deepa Salunkhe made post

Who is eligible to invest in an IPO and are there any restrictions?

Answer
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Arya Nanda answered.
2 years ago


There are really no such restrictions as long as you are an adult and a resident Indian. All Indian nationals who are competent to enter into a valid contract under the Indian Contract Act, 1872, in single or joint names, are eligible to apply for an IPO. That is because an IPO is a contract between the issuer and the investor. Remember, an issuer does not make an offer but the issuer only makes an invitation to offer. When you apply for the IPO, it becomes an offer. Now the ball is in the court of the issuer whether they want to accept the offer or not. Ok, in simple terms it means that any citizen of the country, aged 18 years or more, with a sound mind is eligible to contract, provided he/she is not disqualified from contracting by any other law. What this means is that most people with no police or criminal investigations going against them are safe.