SEBI raises public debt investment limit via UPI to Rs 5 lakh | Business Upturn

SEBI raises public debt investment limit via UPI to Rs 5 lakh

The SEBI raised the public debt investment limit for transactions through the UPI system to 5 lakh from 2 lakh.

To make investments more accessible, the Securities and Exchange Board of India (SEBI) increased the investment limit for payments using the Unified Payments Interface (UPI) method for individual investors purchasing debt securities in public offerings to 5 lakh from 2 lakh now.

According to a circular issued by the SEBI, the new framework would apply to public debt securities offerings that begin on or after May 1, 2022. The present SEBI guidelines allow investors to apply in public issuance of debt securities with the option to block money using the UPI mechanism for application values of up to Rs. 2 lakh.

Following consultations with market players, the SEBI has decided to raise the ceiling for investment via the UPI mechanism to 5 lakh in order to promote uniformity in the criteria and simplicity of investing for investors. The investor may use the method to block money for up to 5 lakh in application value per application.

The National Payments Corporation of India (NPCI) created UPI, an instant payment system (NPCI). It enables the rapid transfer of funds between any two persons’ bank accounts via a payment.

In December 2021, NPCI raised the single transaction limit in UPI from 2 lakh to 5 lakh for UPI-based Application Supported by Blocked Amount (ASBA) Initial Public Offerings (IPO).