Why was my IPO application rejected?

IPO application rejections in Nepal are processed by the Share Registrar after the allotment draw. Rejections can happen at two stages: at the time of submission (immediate errors) or during post-close verification (discovered after the IPO closes). Understanding which stage your rejection occurred at will help you fix it.

This is the most common rejection reason. SEBON regulations allow only one application per CRN (Central Registration Number). If you accidentally submitted the application twice — through MeroShare directly, through LaganiLabs, or through your bank — all duplicate applications will be rejected, including the original.

Fix: Always confirm your application status in LaganiLabs Application History before attempting to re-apply. If you see a "Submitted" status, do not apply again.

When you apply, your bank puts a lien (hold) on the applied amount. If your bank account balance is less than the required amount at the time of lien placement, the application will be rejected.

Fix: Before applying, ensure your linked bank account has at least the minimum application amount available (usually NPR 1,000 per unit × 10 units = NPR 10,000 for most IPOs). Keep a buffer of at least 20% above the required amount.

Many banks require you to separately activate the ASBA (Application Supported by Blocked Amount) facility. If ASBA is not activated for your account, your application will be rejected during the bank verification step.

Fix: Contact your bank's customer service or visit a branch to activate ASBA for your account. This is a one-time process. Most banks can activate it within 1–2 business days.

Your MeroShare profile details (name, date of birth, citizenship number) must exactly match your bank account details. Even a minor mismatch — such as "Sharma" vs "Shrestha" or a different date format — can cause rejection.

Fix: Log into MeroShare and verify your profile details. Contact your DP (broker) if you need to update your registered information.

Some IPOs have eligibility restrictions. For example, certain rights shares (FPOs) are only open to existing shareholders. Applying from an account that does not hold the required shares will result in rejection.

Fix: Check the IPO prospectus or the company announcement to confirm eligibility requirements before applying. LaganiLabs displays eligibility notes on the IPO card where available.

Go to Application History in LaganiLabs and tap on the rejected application. The status detail will show the rejection code from the Share Registrar. You can also log into MeroShare directly and check under "My ASBA" for the official rejection reason code.