The Securities and Exchange Board of India vide its notification dated 5th April 2022 has revised the Unified Payment Interface (UPI) limits in public issue of equity shares and convertibles. The new guidelines will come into force for public issues opening on or after May 1, 2022.
SEBI in its earlier notification, introduced the use of Unified Payment Interface as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for Retail Individual Investors and enhanced the per transaction limit in UPI from Rs. 2 lakh to Rs. 5 lakh in Initial Public Offers(IPOs).
Further, it has now decided that all Individual Investors applying in Public Issues where the application amount is upto 5 Lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form submitted with any of the entities mentioned herein below:
- a syndicate member
- a stock broker registered with a recognised stock exchange (and whose name is mentioned on the website of the stock exchange as eligible for this activity) (‘broker’)
- a depository participant (‘DP’) (whose name is mentioned on the website of the stock exchange as eligible for this activity).
- a registrar to an issue and share transfer agent (‘RTA’) (whose name is mentioned on the website of the stock exchange as eligible for this activity).
