Back to Career News

Retail Investors can use UPI for ₹5 lakh payments in IPOs

April 06, 2022

Retail Investors can use UPI for ₹5 lakh payments in IPOs
Retail investors can now use UPI to put offers up to ₹5 lakh in initial public offerings. The Securities and Exchange Board of India (Sebi) on Tuesday revised the limits for Unified Payment Interface (UPI) in IPOs by retail investors from ₹2 lakh to ₹5 lakh. This will be applicable for public issues coming on or after May 1, 2022, Sebi said.

The regulator has also asked that investors submit their UPI ID in the bid-cum-application form, submitted with the brokers, depository participant, or recorder to the issue. “All Individual investors applying out in the open issues where the application sum is up to ₹5 lakhs will use UPI and will likewise give their UPI ID in the bid-cum-application form submitted,” said Sebi a roundabout.
 
The move comes following the decision of National Payments Corporation of India (NPCI) in December 2021, as far as possible from ₹2 lakh to ₹5 lakh for UPI-based applications upheld by the blocked amount (ASBA) in IPOs.
 
As per the Sebi circular, NPCI has reviewed the systematic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit and confirmed that as of March 30, 2022, over 80% of intermediaries have complied with the NPCI provisions.
 
Back in 2018, the market regulator had allowed UPI payments as a payment alternative for submitting bids in public issues, mainly to create better efficiency and reduce the listing time of an IPO to three days.
Important Links:

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp