Sebi Circular Requires UPI for Blocking Funds in Debt Securities Market

Wednesday, 25 September 2024, 06:19

Markets are seeing a significant shift as the Securities and Exchange Board of India (Sebi) mandates that investors use UPI for debt securities. This new directive applies to public issues of debt securities, with the goal of enhancing investor protection. Investors must provide a UPI ID linked to their bank accounts in bid-cum-application forms starting November 1, 2024.
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Sebi Circular Requires UPI for Blocking Funds in Debt Securities Market

New Sebi Directive on Debt Securities

The Securities and Exchange Board of India (Sebi) has mandated that all individual investors applying for public issues of debt securities up to ₹5 lakh must use UPI for blocking funds. This new requirement aims to enhance investor security and market efficiency. Investors need to include a UPI ID linked to their bank accounts in the bid-cum-application forms submitted through intermediaries.

Details of the Sebi Circular

  • Effective on November 1, 2024
  • Applies to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitized debt instruments
  • Individual investors may still use other methods like SCSBs

Performance Evaluation of MIIs

Sebi has also introduced a circular for the performance evaluation of Market Infrastructure Institutions (MIIs). This framework will ensure a consistent assessment process across these institutions, fortifying market integrity.


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.


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