IPO Update: Individual investors can pay up to Rs.5 lakh in public offerings via UPI

According to an official announcement, the capital markets regulator Sebi raised the UPI payment limit for private investors in public issues on Tuesday.

Individual investors can now utilise UPI to make payments in public issues worth up to Rs.5 lakh. After reviewing the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limits, the National Payments Corporation of India (NPCI) came to this decision.

“NPCI has reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limit,” Sebi said. “As of March 30, 2022, more than 80% of SCSBs, sponsor banks, and UPI apps have conducted system changes and complied with the NPCI provisions.”

“As a result, Sebi has decided that all individual investors applying in public issues with an application amount of up to 5 lakhs shall use UPI and shall also provide their UPI ID in the bid-cum-application form submitted,” it said.

In a circular, Sebi stated that the new standards will apply to public issues that open on or after May 1, 2022.

In December 2021, NPCI increased the single transaction limit for UPI-based Application Supported by Blocked Amount (ASBA) in Initial Public Offers from 2 lakh to 5 lakh (IPOs).