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SEBI issued guidelines for individual investors applying in public issues of equity shares and convertibles. Up to what amount individuals can use UPI for application amount?

SEBI issued guidelines for individual investors applying in public issues of equity shares and convertibles. Up to what amount individuals can use UPI for application amount? Correct Answer Rs. 5 lakhs

The correct answer is Rs. 5 lakhs.

Key Points

  • SEBI guidelines for individuals for public issues for UPI amount:
    • SEBI on November 01, 2018, introduced the use of Unified Payment Interface (UPI) as an additional payment mechanism with “Application Supported by Blocked Amount (ASBA)” for Retail individuals.
    • National Payments Corporation Of India (NPCI) on December 09, 2021, has 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).
    • NPCI has reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limits and confirmed that as of March 30, 2022, more than 80% of Self Certified Syndicate Banks (SCSBs) /Sponsor Banks/UPI Apps have conducted the system changes and have complied with the NPCI provisions.
    • Accordingly, it has been decided that all Individual Investors applying in Public Issues where the application amount is up to 5 Lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form submitted.
  • The new guidelines of enhanced limit for UPI-based applications for public issues will come into force from 1st May 2022.
Additional Information
  • Securities and Exchange Board of India (SEBI):
    • The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.
    • It monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors, formulating regulations and guidelines.
    • Headquarters: Mumbai, Maharashtra
    • Chairmen of SEBI: Ms. Madhabi Puri Buch

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