Sebi, the capital markets regulator, said on Tuesday that individual investors who apply in public issues of equity shares and convertible securities can use the Unified Payment Interface (UPI) for the order amount up to INR 5,000.
Also, they were required to provide their UPI ID on the Offer Request Form submitted with any of these entities – syndicate member, stock broker, depository participant, issue registrar and stock transfer agent.
Sebi said in a post that the new guidelines will come into effect for public cases that will open on or after May 1, 2022.
The decision was made after the National Payments Corporation of India (NPCI) reviewed the systemic readiness required by several brokers to facilitate order processing while increasing the UPI limit.
As of March 30, 2022, more than 80 percent of approved syndicate banks (SCSBs) / sponsoring banks / UPI applications have made system changes and complied with the provisions of the NPCI.
In December 2021, the NPCI enhanced the limit per transaction in UPI from Rs 2 lakh to Rs 5 lakh for UPI-based Application Backed by Prohibited Amount (ASBA) in Initial Public Offerings (IPOs).
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