Public Debt Issuances: SEBI raises investment limit via UPI mechanism to ₹5 lakh

0

The new framework will apply to public issues of debt securities opened on or after May 1, 2022

The new framework will apply to public issues of debt securities opened on or after May 1, 2022

SEBI on Tuesday increased the investment limit for payments through the UPI mechanism for retail investors who buy debt securities in public issuances to ₹5 lakh from the current ₹2 lakh in its effort to facilitate the investment of investors.

The new framework will apply to public issues of debt securities commenced on or after May 1, 2022, the Securities and Exchange Board of India (SEBI) said in a circular.

The current SEBI rules provide investors with an opportunity to apply for public issuances of debt securities with the ability to block funds through the UPI (Unified Payments Interface) mechanism for an application value of up to ₹2 lakh.

Based on discussions with market participants and in order to standardize requirements as well as facilitate investment for investors, SEBI has now decided to increase the investment limit through the UPI mechanism to ₹5 lakh.

The investor can use the mechanism to lock funds for an application value of up to ₹5 lakh per application.

UPI is an instant payment system developed by the National Payments Corporation of India (NPCI). It allows instant money transfer between two people’s bank accounts using one payment.

In December 2021, NPCI had increased the limit per transaction in UPI from ₹2 lakh to ₹5 lakh for UPI based application supported by blocked amount initial public offering (IPO) (ASBA).


Source link

Share.

About Author

Comments are closed.