SEBI revises UPI limits for public issues payment by individual investors
SEBI said that individual investors applying in public issues of equity shares and convertibles can use UPI for application amount up to Rs 5 lakh.
- Apr 5, 2022,
- Updated Apr 5, 2022 5:32 PM IST
Markets regulators Securities and Exchange Board of India (SEBI ) on Tuesday revised use Unified Payment Interface (UPI) for payment in public issues by individual investors
As per a fresh circular, SEBI said that individual investors applying in public issues of equity shares and convertibles can use UPI for application amount up to Rs 5 lakh.
Also, such investors have been asked to provide their UPI ID in the bid-cum-application form submitted with any of these entities :
i. a syndicate member ii. a stock broker registered with a recognised stock exchange (and whose name is mentioned on the website of the stock exchange as eligible for this activity) (‘broker’) iii. a depository participant (‘DP’) (whose name is mentioned on the website of thestock exchange as eligible for this activity) iv. a registrar to an issue and share transfer agent (‘RTA’) (whose name is mentioned on the website of the stock exchange as eligible for this activity)
The new guidelines will come into force for public issues opening on or after May 1, 2022, the market regulator added.
The decision has been taken after National Payments Corporation of India (NPCI) reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit.
As on March 30, 2022, more than 80 per cent of Self Certified Syndicate Banks (SCSBs)/Sponsor Banks/UPI Apps have conducted the system changes and have complied with the NPCI provisions.
In December 2021, NPCI enhanced the per transaction limit in UPI from Rs 2 lakh to Rs 5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) in Initial Public Offers (IPOs).
Markets regulators Securities and Exchange Board of India (SEBI ) on Tuesday revised use Unified Payment Interface (UPI) for payment in public issues by individual investors
As per a fresh circular, SEBI said that individual investors applying in public issues of equity shares and convertibles can use UPI for application amount up to Rs 5 lakh.
Also, such investors have been asked to provide their UPI ID in the bid-cum-application form submitted with any of these entities :
i. a syndicate member ii. a stock broker registered with a recognised stock exchange (and whose name is mentioned on the website of the stock exchange as eligible for this activity) (‘broker’) iii. a depository participant (‘DP’) (whose name is mentioned on the website of thestock exchange as eligible for this activity) iv. a registrar to an issue and share transfer agent (‘RTA’) (whose name is mentioned on the website of the stock exchange as eligible for this activity)
The new guidelines will come into force for public issues opening on or after May 1, 2022, the market regulator added.
The decision has been taken after National Payments Corporation of India (NPCI) reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit.
As on March 30, 2022, more than 80 per cent of Self Certified Syndicate Banks (SCSBs)/Sponsor Banks/UPI Apps have conducted the system changes and have complied with the NPCI provisions.
In December 2021, NPCI enhanced the per transaction limit in UPI from Rs 2 lakh to Rs 5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) in Initial Public Offers (IPOs).