Sebi Mandated Usage of UPI for upto Rs 5 lakh application in public issues

Mumbai: Market regulator Securities and Exchange Board of India has mandated use of UPI for making application in public issues of securities up to Rs 5 lakh and other modes of transaction for higher amounts of application.

"In order to streamline and align the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of public issue of equity shares and convertibles, it has been decided that all individual investors applying in public issues of such securities through intermediaries where the application amount is upto Rs. 5 Lakh, shall only use UPI for the purpose of blocking of funds and provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries," said a Sebi circular.

Further, individual investors shall continue to have the choice of availing other modes for making an application in the public issue, Sebi circular said.