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What is the escrow account in IPO?

Whenever a company decides to go public, the issuing company and syndicate members together open an escrow account with collection banks. Any applicants who wish to apply in the IPO submit applications to the syndicate members with payment of application money in favor of the escrow collection banks. The banks will keep the money till the designated date and afterward, all the funds will be transferred to the bankers to the issue.

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