Why is the amount blocked when I apply for an IPO?

Why is the amount blocked when I apply for an IPO?

·        Temporary Block: Funds are temporarily blocked when you apply for an IPO to ensure you have enough money to buy the shares if your application is successful.

·        Commitment Assurance: This blocking is a standard practice to secure your commitment to purchase the shares you've bid for.

·        Successful Application: If your application is successful, the blocked funds are used to pay for the allotted shares.

·        Unsuccessful Application: If your application is unsuccessful or partially allotted, the blocked funds are returned to you.

·        Streamlining Process: This process helps to streamline the IPO application process and ensures that investors have the necessary funds available for their bids.


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