SEBI revises UPI limits for public issues payment by individual investors

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).