Usage of UPI by individual investors for making an application in public issue of securities through intermediaries
Summary
This circular mandates the use of UPI for blocking funds by individual investors applying through intermediaries for specific debt securities where the application amount is up to Rs. 5 Lakh. It aligns the application process for these instruments with that of equity shares while preserving investor choice for other modes like SCSBs and Stock Exchange Platforms. The provisions apply to public issues opening on or after November 01, 2024.
Text
all individual investors applying in public issues of such securities through intermediaries... where the application amount is upto Rs. 5 Lakh, shall only use UPI for the purpose of blocking of funds and provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries.
individual investors shall continue to have the choice of availing other modes (viz. through SCSBs and Stock Exchange Platform) for making an application in the public issue.
The provisions of this circular shall be applicable to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments opening on or after November 01, 2024.
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, Regulation 29 of SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 and Regulation 48 of SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Usage of UPI by individual investors for making an application in public issue of securities through intermediaries. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.