Investors can now use UPI to place bids up to Rs 5 lakh in initial public offerings. The Securities and Exchange Board of India (Sebi) on Tuesday revised the limits for Unified Payment Interface (UPI) in IPOs by retail investors from Rs 2 lakh to Rs 5 lakh. This will be applicable coming on or after May 1, 2022, according to SEBI.
“All Individual investors applying in public issues where the application amount is up to Rs 5 lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form submitted,” said Sebi. In 2018, the market regulator had allowed UPI payments as an payment alternative for submitting bids in public issues, mainly to create better efficiency and reduce the listing time of an IPO to three days. “The proposed process would increase efficiency, eliminate the need for manual intervention at various stages, and will reduce the time duration from issue closure to listing by up to 3 working days,” Sebi had said in a circular in 2018.