Is applying IPO through LAS ok?

Income Tax Income Tax Notices
1

Hello My name in Nikhil, I have received some large shares from my father. The portfolio value in about 80 lakhs but invested in only two stock Motherson SAMIL and MSWIL. Now i want diversify the portfolio to other stocks as keeping all money in these two stock is risky. I think Getting BHNI category ipo would be very good idea as i am not interest in active portfolio management. i prefer to apply only for large issues and good profitable companies. I am very keen on applying in BHNI category for flagship ipo like NSDL,NSE,Tata capital etc through four different demant account in my family.

My query is that.

  1. can i avail personal OD against my shares and only take out money in my/family member Saving account only to apply IPO. if unallotted they return it back to my OD account. will i get any income tax notice or it is against the income tax rule?

  2. is there any tax implication for transferring the money to my family(parents and brother) and then they return back in few days itself?
    Kindly anyone answer

Thank You

2

Applying for an IPO through a Loan Against Securities (LAS) can offer quick funds, but it involves risks. Ensure you understand interest costs and market volatility before proceeding.

3

A Loan Against Securities (LAS) can be used to finance an IPO, but there is a risk since borrowed funds are involved. You should be aware of the interest cost and possible volatility of the market before making a decision.