SEBI Mandates UPI For Public Issue Applications Of Debt Securities

SEBI Mandates UPI For Public Issue Applications Of Debt Securities

These provisions will apply to public issues of debt securities starting from November 1.

PTIUpdated: Tuesday, September 24, 2024, 08:14 PM IST
article-image
Representative Image/File | FPJ Library

To streamline the application process for public issues of debt securities, markets regulator Sebi on Tuesday asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds.

Further, investors will continue to have the choice of availing other methods like applying through Self-Certified Syndicate Banks or the stock exchange platform for making applications, Sebi said in its circular.

These provisions will apply to public issues of debt securities starting from November 1.

The move is aimed at streamlining and aligning the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of the public issue of equity shares and convertibles.

"It has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants), where the application amount is up to Rs 5 lakh, shall only use UPI for the purpose of blocking of funds," Sebi said.

SEBI

SEBI | Representative Image

Also, they are required to provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries, it added.

Last week, Sebi amended rules to streamline the process for public issuance of debt securities aimed at providing faster access to funds for such issuers.

Under the amended rules, Sebi reduced the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers.

Also, the minimum subscription period has been cut from 3 working days to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days.

RECENT STORIES

Trump Presidency Set To Benefit India, Asian Countries Due To US-China Rivalry: Moody's Ratings

Trump Presidency Set To Benefit India, Asian Countries Due To US-China Rivalry: Moody's Ratings

Safety First: A Look At Performance Of Indian Cars in Global New Car Assessment Programme (GNCAP)

Safety First: A Look At Performance Of Indian Cars in Global New Car Assessment Programme (GNCAP)

India's Steel Exports Clock Double-Digit Growth In October

India's Steel Exports Clock Double-Digit Growth In October

Ola Shares Crumble By Close To 20% In A Month Amid Controversies Surrounding Product Quality

Ola Shares Crumble By Close To 20% In A Month Amid Controversies Surrounding Product Quality

Nestle Fares Poorly In Baby Food Safety Globally; Scores Low In Code Compliance: Report

Nestle Fares Poorly In Baby Food Safety Globally; Scores Low In Code Compliance: Report