Retail investors can apply for new bond issues from Jan 1 through UPI - SEBI
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The Securities and Exchange Board of India (Sebi) has provided an option to investors to apply in public issue of debt securities through the online interface of stock exchanges with a facility to block funds through unified payments interface (UPI) mechanism for application value of up to Rs 2 lakh.
The regulator has allowed the UPI mechanism to block funds for application value up to Rs 2 lakhs submitted through intermediaries.
The new option would be applicable to investors for public issue of debt securities which open on or after January 1, 2021.
The details of commission and processing fees payable to each intermediary and the timelines for payment should be disclosed in the offer document, Sebi said.
Also, intermediaries should provide necessary guidance to investors in use of UPI while making applications in public issues.
The regulator said all entities involved in the process should co- ordinate with one another to ensure completion of listing of securities and commencement of trading by T+6 day.
UPI is an instant payment system, which allows transfer of money between any two persons’ bank accounts using a payment address which uniquely identifies a person's bank account.
The regulator has allowed the UPI mechanism to block funds for application value up to Rs 2 lakhs submitted through intermediaries.
The new option would be applicable to investors for public issue of debt securities which open on or after January 1, 2021.
The details of commission and processing fees payable to each intermediary and the timelines for payment should be disclosed in the offer document, Sebi said.
Also, intermediaries should provide necessary guidance to investors in use of UPI while making applications in public issues.
The regulator said all entities involved in the process should co- ordinate with one another to ensure completion of listing of securities and commencement of trading by T+6 day.
UPI is an instant payment system, which allows transfer of money between any two persons’ bank accounts using a payment address which uniquely identifies a person's bank account.
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