Capital markets regulator Securities Exchange Board of India (Sebi) said individual investors applying in public issues of equity shares and convertibles can use Unified Payment Interface (UPI) for application amount up to ₹5 lakh, reported Business Standard.
They have also been asked to share their UPI ID in the bid-cum-application form submitted with any of these entities — syndicate member, stock broker, depository participant and registrar to an issue and share transfer agent, wrote Business Standard.
The new guidelines will become effective for public issues opening on or after May 1, 2022, a Sebi circular said.
The decision was 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, over 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 last year, NPCI raised the per transaction threshold in UPI from ₹2 lakh to ₹5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) in Initial Public Offers (IPOs).