SEBI hikes UPI limits to Rs. 5 lakhs for individual investors applying for public issues

Circular No. SEBI/HO/CFD/DIL2/CIR/P/2022/45, Dated: 05.04.2022

In November 2018, the SEBI introduced the use of Unified Payment Interface (UPI) 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 for applications by Retail Individual Investors submitted through Intermediaries.

The National Payments Corporation of India (NPCI) vide. circular dated 09.12.2021, hiked transaction limit in UPI from Rs. 2 lakhs to Rs. 5 lakhs for UPI-based Application Supported by Blocked Amount in Initial Public Offers (IPOs).

NPCI reviewed the systemic readiness required at various intermediaries to facilitate the processing of applications with increased UPI limits 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.

Accordingly, the SEBI has decided that all Individual Investors applying in Public Issues where the application amount is up to 5 Lakhs shall use UPI and also provide their UPI ID in bid-cum-application form to be submitted with any of the entities:

(a) a syndicate member

(b) a stock broker registered with a recognised stock exchange

(c) a depository participant

(d) a registrar to an issue and share transfer agent

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