Public Debt Issuance | SEBI raises the investment limit to ₹5,000 via the UPI mechanism

The new framework will apply to public debt issuances opening on or after May 1, 2022, SEBI said in a circular

The new framework will apply to public debt issuances opening on or after May 1, 2022, SEBI said in a circular

The Securities and Exchange Board of India (SEBI) on March 8 increased the investment limit on payments through the UPI mechanism for retail investors buying debt securities in public issues from the current 2 lakh to 5 lakh from the current 2 lakh to allow investors to invest to facilitate .

The new framework will apply to public debt issuances opening on or after May 1, 2022, SEBI said in a circular. Current SEBI rules offer investors the ability to apply for public debt issuance with the ability to freeze funds through the UPI (Unified Payment Interface) mechanism for an application value of up to ₹2 lakh.

Based on discussions with market participants and in order to harmonize the requirements and make it easier for investors to invest, SEBI has now decided to increase the limit for investments via the UPI mechanism to ₹5 lakh. The investor can use the mechanism to freeze the funds for an application value 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 money between any two people’s bank accounts with one payment. In December 2021, NPCI had increased the per-transaction limit in UPI from 2 lakh to 5 lakh for the UPI-based application backed by the Blocked Amount (ASBA) Initial Public Offer (IPO).

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