SEBI’s new rules from November 1: UPI now mandatory for bids up to ₹5 lakh in public debt issues - MMJC

The Securities and Exchange Board of India (SEBI) has introduced new rules aimed at simplifying the process of applying for public issues of debt securities. From November 1, individual investors applying through intermediaries for amounts up to ₹5 lakh will be required to use the Unified Payments Interface (UPI) for fund blocking.

This decision is part of SEBI’s effort to make the process more efficient and align it with the existing process for public issues of equity shares and convertibles.

The impact

Makarand M Joshi, Founder of MMJC and Associates, a corporate compliance firm, said “Mandating UPI for bids up to ₹5 lakh will ease the process, potentially drawing more retail investors into the debt segment.”

Joshi added that this comes at a time when UPI transactions have surged to ₹1,669 lakh crore, according to data from the Ministry of Finance.

SEBI has been actively working to make the debt market more appealing.

The view of Mr. Makarand Joshi – Partner – has been captured in the CNBC – 18 and the same can be accessed at the following link:

https://www.cnbctv18.com/personal-finance/sebi-new-rules-november-1-ipo-public-issues-debt-securities-apply-upi-mandatory-5-lakh-19482036.htm