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 implements Phase II of the Unified Payments Interface with Application Supported by Block Amount (UPI-ASBA) for public issues, effective July 1, 2019. It discontinues Channel III applications, mandating that retail individual investors use only the UPI mechanism through approved Self-Certified Syndicate Banks. The document also outlines record retention requirements for intermediaries and provides a list of eligible banks and mobile applications.
Text
Phase II shall become effective from July 1, 2019... existing process... will be discontinued i.e. Channel III at Para 5.1... would discontinue. For such applications only the UPI mechanism would be the permissible mode i.e. Channel IV
In Phase II, the existing timeline of T+6 days will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later. The implementation of Phase III shall continue unchanged as per the aforesaid Circular from the date of completion of Phase II
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... he/she shall also ensure that the name of the app and the UPI handle being used... is also appearing in the aforesaid list
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)
Intermediaries shall retain physical application forms submitted by retail individual investors with UPI as a payment mechanism, for a period of six months and thereafter forward the same to the issuer / Registrar to Issue... Intermediaries shall, at all times, maintain the electronic records relating to such forms for a minimum period of three years
All entities involved in the process are advised to take necessary steps to ensure compliance with this circular
This circular is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992
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.