Money paid for IPO under ASBA in someone else

As per the new ASBA rules, a person can apply for shares in a IPO on behalf of  5 persons.

How will the accounting for the payment be made in the books of the parties.

 

I am giving an example:

A applies for the shares worth 2 lakhs in name of B with all details of B only including his demat account number.

The Bank withholds 2 lakhs from A's Bank account till the shares are alotted & when the shares are alloted, that much amount is debited to A's Bank account & the balance amount is released for utilization

Shares for 15,000 are alloted to B by the company & the shares are credited directly by the Registrar to the demat account of B & the bank account of A is debited by15,000

B gets the shares & pays 15,000 to A + 250/- as interest for utilising his money for the IPO period

 

How will the entries be passed in the books of accounts of both A & B and also how will the confirmation be made

 

Thanks for advising

Replies (1)

B shall be debited amt to Rs. 15000 at the time of allotment of shares nd bank will be credited nd when  B will pay the same ,B & Interest shall be credited. In my opinion it shall be treated  simple transaction as we do at the time of  making loan to the parties.

                   If m wrong then correct plz.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details