Individual Investors Can Use UPI for IPO Payments up to Rs 5 Lacs

Securities and Exchange Board of India (SEBI) announced on Tuesday that Individual Investors applying for IPO can now use UPI for payments up to Rs 5 Lacs.

Previously, the limit was set at Rs 2 Lacs, restricting individuals who wished to invest a large sum of money.

Investors will also be asked to submit their UPI ID in the bid-cum-application form submitted with syndicate members, stockbrokers, and depository participants.

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

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

Source: TOI

The new announcement has come ahead of the Initial public offering of India’s largest insurance company LIC.