The steps are given below:
Step 1: Open NRI Demat and Trading Accounts
NRIs must open demat and trading accounts with brokers authorised to handle NRI clients. This involves submitting KYC documents, RBI approvals, and bank account details.
Step 2: Understanding the ASBA Process
The Application Supported by Blocked Amount (ASBA) process is mandatory for IPO investments. ASBA allows the applicant’s bank to block the IPO amount in their account instead of debiting immediately. Only after successful share allotment is the amount deducted.
Step 3: Application Submission
NRIs can apply for IPO shares online through their broker’s platform or offline via physical application forms, selecting the NRI category and providing demat and bank details.
Step 4: Payment and Fund Blocking
The application amount is blocked in the NRI’s bank account using the ASBA facility until allotment.
Step 5: Share Allotment and Listing
After subscription closes, shares are allotted proportionally or via a lottery if oversubscribed. Allotted shares are credited to the NRI’s demat account and listed on stock exchanges, enabling trading.