Text size:
S M L
Letter spacing:

Get App

FinFIRST Blogs

Finance

How NRIs Can Apply for an IPO in India Through ASBA

Key Takeaways

NRIs can apply for IPOs in India through ASBA using an NRE or NRO account along with an NRI Demat account, making the process secure and seamless.
Under ASBA, the IPO application amount remains blocked in the investor’s bank account and is debited only upon share allotment, while continuing to earn interest in the meantime.
NRI investors should ensure proper KYC compliance, correct linkage between bank and Demat accounts, and awareness of repatriation and currency-related considerations before applying for an IPO.

04 May 2026 by Team FinFIRST

Apply Now

As a Non-Indian Resident (NRI), you can explore multiple investment options in India. This includes various types of fixed-income instruments and market-linked investment avenues. An Initial Public Offering (IPO) is one option that could be on your investment watchlist. It is the first offering of shares by a private company as it enters the public market to raise capital.

6 Types of UPI Frauds & How to Stay Safe | IDFC FIRST Bank

6 Ways You Can Reduce Fraud by Choosing Virtual Credit Card | IDFC FIRST Bank

What is ASBA and How Does It Work?

ASBA is a payment mechanism recognised by Indian regulators that allows investors to apply for IPOs without transferring funds upfront. When you apply through ASBA:

The bid amount is blocked in your bank account

Funds are debited only if shares are allotted

Unallotted amounts are automatically released

Your money continues to earn interest while it remains blocked

What is the ASBA eligibility criteria for NRIs?

Here’s a quick overview of the ASBA NRI eligibility criteria:

NRI account:

You need to hold an NRI Account to access the ASBA facility. You can either open a Non- Resident External (NRE) or Non-Resident Ordinary (NRO) Account.

NRE account:

NRE account is an Indian Rupee-denominated account. It enables you to park your foreign currency income in India.

NRO account:

NRO account is also an Indian-Rupee-denominated account. It is useful for securely receiving Indian income, such as rental income, investment dividends, or pension payments.

NRI demat account:

You need an NRI Demat Account for the ASBA process. It securely holds your market investments, while also ensuring transparency, real-time tracking, and easy access to your holdings.

Trading account:

You will also need a Trading Account and a Portfolio Investment Scheme (PIS) Account if you plan to sell the allotted IPO shares in the secondary market.

PIS account access:

The Trading Account provides the interface for executing trades, while the PIS Account grants access to trade within regulatory limits.

Eligibility for IPO through ASBA

To apply for an IPO through ASBA with IDFC FIRST Bank, you must meet the following basic requirements:

Savings account with IDFC FIRST Bank (ASBA-enabled bank)

Valid PAN and KYC compliance

Active Demat account to receive shares

Sufficient balance in the account to block the IPO amount

Correct investor category and details while applying (retail/HNI, etc.)

How can an NRI apply for an IPO through ASBA?

As an NRI, you can apply for an IPO through ASBA following the below steps:

1. Log in to Net Banking or the Mobile App:

Use your secure credentials to access your NRE or NRO bank account online.

2. Navigate to: Accounts → All Investments

This section gives you a consolidated view of available investment options, including IPOs.

3. Select ‘Invest into IPO_ASBA’

You will see a list of ongoing IPOs open for subscription.

4. Choose the IPO you want to invest in

Select the IPO, review details, and enter your bid quantity and price (cut‑off or within the price band).

5. Confirm and Submit

Your application amount will be blocked while continuing to earn interest, and you’ll receive an SMS/Email once your application is successfully submitted.

What are the key considerations for NRI investors when applying for an IPO through ASBA?

Keep these things in mind if you are an NRI investor opting for ASBA for IPO:

KYC compliance:

Complete your KYC with your bank and broker, so that your bank account, demat account, and trading account remain operational.

Single account usage:

If you hold both NRE and NRO accounts, you can apply for an IPO through only one account, as both are linked to the same Permanent Account Number (PAN). To ensure a seamless IPO application and verification process, please confirm that your PAN is correctly updated with your bank and duly linked to your Demat account, enabling smooth identity verification by the bank and the registrar.

Correct account linkage:

Ensure that the appropriate Demat account is linked to your bank account. For instance, an NRE demat account should be linked to an NRE bank account, not an NRO account.

Regulatory compliance:

Invest in companies that are permitted by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).

Currency risk awareness:

Since your investment is in Indian Rupees, ensure you are aware of and account for the potential impact of currency fluctuations.

Repatriation considerations:

Evaluate your account type for repatriation and tax implications prior to investing in an IPO. This is because an NRE account allows full repatriation and is tax-free, while an NRO account allows repatriation up to USD 1 Million per year and is subject to tax.

Summing it up

As an NRI, you are eligible to apply for any upcoming IPOs in India. You need an NRI account, either an NRE or an NRO bank account, and an NRI demat account to apply.

ASBA blocks the bid amount in your bank account, keeping your funds secure while continuing to earn interest.

The funds can either be debited or released, depending on the IPO allotment outcomes.

Frequently Asked Questions

Can NRIs apply for IPOs using ASBA?

Yes, NRIs can apply for an IPO using ASBA. An NRI bank account and an NRI demat account will be required for it.

Can NRIs use UPI instead of ASBA for IPOs?

Yes, NRIs can use UPI to apply for an IPO. However, the NRI Account should be enabled for UPI.

Can I invest in an IPO if I don’t have an IDFC FIRST Bank demat account?

Yes. NRIs can apply for IPOs using an NRE or NRO bank account even if they do not have an IDFC FIRST Bank demat account

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.