The Securities and Exchange Board of India (SEBI) on September 24, 2024, issued a circular regarding usage of UPI by individual investors for making an application in public issue of securities through intermediaries.
The following has been stated: -
•The Securities and Exchange Board of India (SEBI) has introduced a new guideline for individual investors applying for public issues of securities through intermediaries.
•As per the new rule, individual investors applying for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitized debt instruments with an application amount of up to Rs. 5 lakhs will have to use Unified Payments Interface (UPI) for blocking funds. They'll need to provide their bank account-linked UPI ID in the bid-cum-application form submitted with intermediaries.
•Individual investors can still choose other modes, such as through Scheduled Commercial Banks (SCSBs) and Stock Exchange Platforms, for making applications in public issues.
•This move aims to streamline and align the application process for various securities with of public issues of equity shares and convertibles, ultimately protecting investor interests and promoting securities market development.
•Effective Date: November 01, 2024.
[Circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/128]
