The Securities and Exchange Board of India (SEBI) has made major changes to the rules for retail investors investing in IPOs, which can prove very beneficial for retail investors.
According to a circular issued by SEBI, it has been decided that all retail investors bidding for an IPO should use UPI Payment for bids up to Rs 5 lakh. They can also provide their UPI ID in their bid-cum-application form. This regulation applies from May 1st.
This circular clarified that NPCI reviewed the preparation of its system for this new system. In addition, around 80 percent of the intermediary institutions have also agreed to make changes in accordance with the new rules.
This decision by SEBI comes almost 4 months after NPCI changed the rules for UPI payment transactions. In that decision, NPCI had reduced the limit per transaction from UPI to Rs 2 lakh. At the same time, SEBI had granted permission to make payments for investments in the 2018 IPO itself through UPI, effective July 1, 2019.
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