Willing to invest in an initial public offering (IPO)? Here is good news for you. Investors will be allowed to apply in IPOs through Unified Payments Interface (UPI) mode for up to Rs 5 lakh per application, according to an announcement made by the Securities and Exchange Board of India (Sebi).
Earlier, the limit was Rs 2 lakh. The new rules will come into effective from May 1, 2022.
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So, you can bid upto Rs 5 lakh through UPI for IPOs that will open on or after May 1.
This comes after National Payments Corporation of India (NPCI), which manages the online payment system UPI, undertook system audits and found that a hike in the limit was required, Sebi said.
” it has been decided that all individual Investors applying in Public Issues where the application amount is up to 5 Lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form,” according to a circular issued by the markets regulator Sebi.
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Earlier, NPCI had raised the transaction limit in the UPI system from Rs 2 lakh to Rs 5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) in IPOs.
In November, 2018, the Sebi allowed investors to bid for an IPO through UPI. The move was implemented from July 1, 2019.
