SEBI issues revision to operational circular for increasing limit for investment through UPI mechanism to Rs. 5 lakh

On August 10, 2021, SEBI has issued an Operational Circular no. SEBI/HO/DDHS/P/CIR/2021/613 which provided an option to investors to apply in public issues of debt securities with the facility to block funds through Unified Payments Interface (UPI) mechanism for application value upto Rs. 2 lakh
SEBI has now made revisions to the Operational circular in order to bring about uniformity in the requirements and for ease of investment for investors and therefore, increased the limit for investment through UPI mechanism to Rs. 5 lakh.
Accordingly, the following amendments are being made to Chapters I & II of the said Circular, pertaining to limits of UPI transactions, as given below:
  • Chapter I – Application process in case of public issues of securities and timelines for listing Paragraph 1.2 shall stand modified as follows:

“mentioning UPI ID in order to block the funds. The investor may utilize the UPI mechanism to block the funds for application value upto Rs. 5 lakh per application.”

  • Paragraph 2.1 (c) shall stand modified as follows:
“An investor may submit the bid-cum- application form with a SCSB or the intermediaries mentioned above 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. The intermediary shall upload the bid on the stock exchange bidding platform. The application amount would be blocked through the UPI mechanism in this case.”
  • Paragraph 5.3 shall stand modified as follows:
“ 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. ”
  • Paragraph 11.3 (a) (ii) shall stand modified as follows:
“ App based/ web interface applications from investors with UPI mode for blocking the mode for application value upto Rs. 5 lakh.”
  • Chapter II –Application form and Abridged Prospectus Paragraph 3.1 shall stand modified as follows:
“UPI mechanism for blocking funds would be available for application value upto Rs. 5 lakh.

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