The new framework will be applicable to public issues of debt securities that open on or after May 1, 2022, Sebi said in a circular.
The new framework will be applicable to public issues of debt securities that open on or after May 1, 2022, Sebi said in a circular.
The Securities and Exchange Board of India (SEBI) on March 8, in its effort to ease investment for investors, raised the investment limit for retail investors buying debt securities in public issues through the UPI mechanism from the current ₹2 lakh. increased from ₹ 5 lakh. ,
SEBI said in a circular that the new framework would be applicable to public issues of debt securities opened on or after May 1, 2022. The extant SEBI regulations provide an option to investors to apply for a public issue of debt securities, with the facility to block funds through the UPI (Unified Payments Interface) mechanism for an application value of up to ₹2 lakh.
Based on discussions with market participants and to bring about uniformity in requirements as well as ease of investment for investors, SEBI has now decided to increase the investment limit through the UPI mechanism to ₹5 lakh. The investor can use the mechanism to block funds for an application value of up to ₹5 lakh per application.
UPI is an instant payment system developed by the National Payments Corporation of India (NPCI). It allows instant transfer of funds between bank accounts of any two persons using payments. In December 2021, NPCI increased the limit per transaction in UPI from ₹2 lakh to ₹5 lakh.