SEBI circular dated November 1, 2018, had introduced the use of Unified Payments Interface (UPI) as a payment mechanism with Application Supported by Blocked Amount (ASBA) for applications in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants), with effect from January 01, 2019.
The scheme was resolved to be implemented in a phased manner to ensure gradual transition to UPI with ASBA. Vide SEBI Circular dated June 28, 2019, Phase II was implemented from July 01,2019.
In Phase II, for applications by retail individual investors through intermediaries, the process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks (SCSBs) for blocking of funds was discontinued and only the UPI mechanism with existing timeline of T+6 days was mandated, for a period of 3 months or floating of 5 main board public issues, whichever is later.
After consulting with intermediaries and stakeholders, SEBI has decided, in the interest of smooth transition, to extend the timeline for implementation of Phase II till March 31, 2020.
The Revised timeline for the existing T+6 environment is provided in Annexure 1 of the Circular.
Click here to read the Circular
