What is the eligibility criteria for applying for an IPO?

Before you get excited about listing gains and multibaggers you first need to check if you are eligible to play the game. While the Indian stock market is open to almost everyone there are specific legal and financial entry tickets you must hold. Whether you are a resident Indian, a student (minor) or someone living abroad (NRI) the rules for 2026 are very clear to ensure that the process remains safe and fair.

Applying for an IPO is not just about having money in your bank account; it’s about having the right digital infrastructure linked to your identity. If even one piece of information is missing or mismatched the stock exchange will reject your application without a second thought. Here is the simple updated list of eligibility criteria you need to satisfy to bid for an IPO in 2026.

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The 3 Absolute Must-Haves (The Entry Ticket)

Regardless of your age or location, these three items are mandatory for every single IPO applicant in India.

1. A Valid PAN Card: Your Permanent Account Number is your primary identity in the financial world. Every IPO application is tracked via your PAN.
2. A Demat Account: You cannot hold IPO shares in a physical file. They are dematerialized (digital). You must have an active Demat account with a depository participant like Motilal Oswal.
3. A Linked Bank Account (ASBA): Your bank account must support ASBA (Application Supported by Blocked Amount). This is a facility where the money stays in your account but is frozen until the allotment is done.

Eligibility Based on Investor Category (2026)

In India you don't just apply as a person; you apply under a specific category. Your eligibility and limits depend on which group you fall into.

Category

Who can apply?

2026 Investment Limit

Retail (RII)

Resident Individuals & HUFs.

Up to ₹2 Lakhs.

HNI (Small NII)

Wealthy individuals & NRIs.

₹2 Lakhs to ₹10 Lakhs.

HNI (Big NII)

Corporates & Trusts.

Above ₹10 Lakhs.

Employee

Confirmed employees of the company.

As per company policy.

Special Eligibility: Minors and NRIs

Many people believe that children or those living abroad cannot invest in Indian IPOs. This is a myth!

1. Can a Minor (Under 18) Apply?

Yes! A minor can apply for an IPO but with these conditions:

• The Account: The Demat and Bank accounts must be in the minor's name.
• The Guardian: A parent or legal guardian must manage the account until the child turns 18.
• The Process: The guardian signs the forms or uses the minor's UPI/Net banking to apply.

2. Can an NRIApply?

Yes! Non-Resident Indians can participate provided they have:

• NRE or NRO Account: An Indian bank account for non-residents.
• PIS Approval: A Portfolio Investment Scheme (PIS) letter from their bank (though for many IPOs in 2026 a simple NRO account is enough).
• Restrictions: Some companies (check the RHP) may restrict NRIs from certain countries like the USA or Canada due to their local laws.

The One PAN One Application Rule

This is the most common reason for rejection. You cannot apply for the same IPO from two different broker accounts if they are linked to the same PAN.

• Correct: Use your PAN to apply from your Motilal Oswal account.
• Incorrect: Using your PAN to apply once from Motilal Oswal and again from a different broker app for the same IPO. This will lead to automatic rejection of both applications.