SEBI/HO/CFD/DIL2/CIR/P/2022/45 April 05, 2022
To
Recognized Stock Exchanges
Registered Stock Brokers
Registered Merchant Bankers
Registered Registrars to an Issue and Share Transfer Agents
Depositories and Registered Depository Participants
Registered Bankers to an Issue
Self Certified Syndicate Banks (SCSBs)
National Payments Corporation of India (NPCI)
Dear Sir / Madam,
Sub: Revision of UPI limits in Public Issue of Equity Shares and convertibles
1. 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.
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:
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i. a syndicate member
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’)
iii. a depository participant (‘DP’) (whose name is mentioned on the
website of the stock exchange as eligible for this activity)
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
+91-22-26449639
vandanaj@sebi.gov.in
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