SEBI mandates UPI for public issue applications of debt securities PSU Watch
News Updates

SEBI mandates UPI for public issue applications of debt securities

SEBI has asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds

PTI

New Delhi: To streamline the application process for public issues of debt securities, markets regulator Sebi on Tuesday asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds. Further, investors will continue to have the choice of availing other methods like applying through Self-Certified Syndicate Banks or the stock exchange platform for making applications, Sebi said in its circular.

These provisions will apply to public issues of debt securities starting from November 1.

PSU Watch is now on Whatsapp Channels. Click here to join

The move is aimed at streamlining and aligning the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of the public issue of equity shares and convertibles.

"It has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants), where the application amount is up to Rs 5 lakh, shall only use UPI for the purpose of blocking of funds," Sebi said.

Also, they are required to provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries, it added.

Last week, Sebi amended rules to streamline the process for public issuance of debt securities aimed at providing faster access to funds for such issuers.

Under the amended rules, Sebi reduced the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers.

Also, the minimum subscription period has been cut from 3 working days to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

Greater efficiency, cost-effectiveness in solar tech key to widespread deployment: Joshi

Chandra Shekhar Tiwari set to be next Director (Technical) of CCL

Govt to sell 2.5% in HZL at floor price of Rs 505 per share, aims to raise over Rs 5,000 crore

GRSE shifts gear to next generation warship mode, lays keels of first two NGOPVs

IEX electricity trade volumes rise 4% to 9,642 MUs in Oct