Public Debt Issuances: Sebi raises investment limit via UPI mechanism to Rs 5 lakh

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Sebi on Tuesday raised the investment limit for payments through the UPI mechanism for retail investors who buy debt securities in public issues to Rs 5 lakh from the current Rs 2 lakh in its effort to make it easier for investors to invest .

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 Rs 2 lakh.

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

The investor can use the mechanism to lock funds for an application value of up to Rs 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 Rs 2 lakh to Rs 5 lakh for the UPI based application supported by Locked Amount Initial Public Offering (IPO) (ASBA).

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)


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