Individual investors can use UPI for up to Rs 5 lakh payment in public issues

New Delhi: Capital markets regulator Sebi on Tuesday said individual investors applying in public issues of equity shares and convertibles can use Unified Payment Interface (UPI) for application amount up to Rs 5 lakh.

Also, they have been asked to provide their UPI ID in the bid-cum-application form submitted with any of these entities -- syndicate member, stock broker, depository participant and registrar to an issue and share transfer agent.

The new guidelines will come into force for public issues opening on or after May 1, 2022, Sebi said in a circular.

The decision has been taken after National Payments Corporation of India (NPCI) reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit.

As on March 30, 2022, more than 80 per cent of Self Certified Syndicate Banks (SCSBs)/Sponsor Banks/UPI Apps have conducted the system changes and have complied with the NPCI provisions.

In December 2021, NPCI enhanced the per transaction limit in UPI from Rs 2 lakh to Rs 5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) in Initial Public Offers (IPOs).