Revision of UPI limits in Public Issue of Equity Shares and convertibles

SEBI vide Circular SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018 introduced the use of Unified Payment Interface as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for Retail Individual Investors and the same was mandated w.e.f. July 01, 2019 vide SEBI Circular SEBI/HO/CFD/DIL2/CIR/P/2019/76 dated June 28, 2019 for applications by Retail Individual Investors submitted through Intermediaries.

2. NPCI vide circular reference no. NPCI/UPI/OC No. 127/ 2021-22 dated December 09, 2021, inter alia, has enhanced the per transaction limit in UPI from Rs. 2 lakh to Rs. 5 lakh for UPI based Application Supported by Blocked Amount (ASBA) in Initial Public Offers(IPOs).

3. NPCI has reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit and confirmed that as on March 30, 2022, more than 80% of SCSBs/Sponsor Banks/UPI Apps have conducted the system changes and have complied with the NPCI provisions.

1. 4. Accordingly, it has been decided that all Individual Investors applying in Public Issues where the application amount is upto 5 Lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form submitted with any of
   the entities mentioned herein below :
   1. i. a syndicate member
   2. ii. a stock broker registered with a recognised stock exchange (and whose name is mentioned on the website of the stock exchange as eligible for this activity) (‘broker’)
   3. iii. a depository participant (‘DP’) (whose name is mentioned on the website of the stock exchange as eligible for this activity)
   4. iv. a registrar to an issue and share transfer agent (‘RTA’) (whose name is mentioned on the website of the stock exchange as eligible for this activity)

5. This circular shall come into force for Public Issues opening on or after May 01, 2022 and is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992.

6. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Issues and Listing”.

Yours faithfully,

Vandana Joglekar
Deputy General Manager

Circular : https://www.dropbox.com/s/zmkxdeo8eyk2i6g/Revision%20of%20UPI%20limits%20in%20Public%20Issue%20of%20Equity%20Shares%20and%20convertibles.pdf?dl=0