UPI mechanism helps block funds while applying through intermediaries
BBN Report
MUMBAI/November 23-2020: The Securities and Exchange Board of India (Sebi), the market regulator, today introduced an option for investors to apply in public issues of debt securities through the online interface of stock exchanges with an additional facility to block funds through UPI mechanism for application value up to Rs2 lakh.
The regulator has permitted the unified payment interface (UPI) mechanism to block funds for such application submitted through intermediaries. These debt securities included non-convertible redeemable preference shares, securitised debt instruments and municipal debt securities.
Effective from Jan 1
The new framework would be applicable to a public issue of debt securities which opens on or after January 1, 2021, a Sebi circular said today. Stock exchanges would have to formulate and disclose the operational procedure for applying through the app or web-based interface developed by them in order to apply in public issue on their websites, the regulator further said.
Advertisement
