Streamlining the Process of Public Issue of Equity Shares and convertibles- Implementation of Phase II of Unified Payments Interface with Application Supported by Block Amount
Summary
This circular mandates the discontinuation of Channel III for retail individual investors in public issues, making UPI with ASBA the sole permissible payment mode effective July 1, 2019. It requires investors to use only Self-Certified Syndicate Banks (SCSBs) and mobile applications listed on the SEBI website for UPI transactions. Applications submitted using incorrect UPI handles or from banks not on the approved list are liable to be rejected.
Text
Channel III at Para 5.1 of Circular dated November 01, 2018 has been discontinued. For such applications only the UPI mechanism would be the permissible mode i.e. Channel IV at Para 5.1 of the said Circular.
Applications through UPI in IPOs can be made only through the SCSBs / mobile applications (apps) whose name appears on the SEBI website... An investor shall ensure that when applying in IPO using UPI, the name of his Bank appears in the list of SCSBs displayed on the SEBI website which are live on UPI.
An application made using incorrect UPI handle or using a bank account of an SCSBs or bank which is not mentioned in the aforesaid list is liable to be rejected.
Investors whose bank is not live on UPI as on the date of this Circular, may use the other alternate channels available to them viz. submission of application form with SCSB or using the facility of linked online trading, demat and bank account (Channel I or II at Para 5.1 of Circular dated November 01, 2018).
Source: SecMarx — Streamlining the Process of Public Issue of Equity Shares and convertibles- Implementation of Phase II of Unified Payments Interface with Application Supported by Block Amount. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.