SEBI Mandates UPI for Preference Shares and Equity Applications
Tuesday, 24 September 2024, 06:49
Overview of SEBI's New Mandate
SEBI has mandated that all individual investors applying for up to Rs 5 lakh in public issues of debt securities, which include non-convertible redeemable preference shares and municipal debt securities, must use UPI for the blocking of funds.
Objectives of the Mandate
- Streamlining Processes: Aligning debt securities applications with equity shares processes.
- Enhanced Accessibility: Faster access to funds for issuers.
- Investor Convenience: Simplifying transactions via UPI.
Implementation Timeline
This new mandate will be effective from November 1. Investors need to provide their bank account linked UPI ID while submitting applications through intermediaries.
Changes to Application Procedures
- Public comments period reduced to 1 day for listed securities.
- Minimum subscription period shortened to 2 days.
- Amendments to price band or yield can extend bidding by 1 day.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.