Revision to Operational Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper
Summary
This circular amends the operational procedures for issuing and listing non-convertible securities to align with updated UPI transaction limits. It increases the maximum application value eligible for fund blocking via the Unified Payments Interface from Rs. 2 lakh to Rs. 5 lakh. These amendments apply to public issues of debt securities opening on or after May 1, 2022.
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it has been decided to increase the limit for investment through UPI mechanism to Rs. 5 lakh.
The investor may utilize the UPI mechanism to block the funds for application value upto Rs. 5 lakh per application.
An investor may submit the bid-cum-application form... and use his/ her bank account linked UPI ID for the purpose of blocking of funds, if the application value is Rs. 5 lakh or less.
Sponsor Bank means a Banker to the Issue registered with SEBI which is appointed by the Issuer to act as a conduit between the stock exchanges and the NPCI in order to push the mandate collect requests and/ or payment instructions of the investors into the UPI.
App based/ web interface applications from investors with UPI mode for blocking the mode for application value upto Rs. 5 lakh.
UPI mechanism for blocking funds would be available for application value upto Rs. 5 lakh.
The provisions of this circular shall be applicable to public issues of debt securities which open on or after May 1, 2022.
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021.
Source: SecMarx — Revision to Operational Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.