Public issues – mobile app or UPI

SEBI circular dated 26th July, 2019

1. This refers to SEBI circular No. SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated
November 1, 2018, vide which SEBI had introduced the use of Unified Payments
Interface (UPI) as a payment mechanism with Application Supported by Block
Amount (ASBA) for applications in public issues by retail individual investors
through intermediaries (Syndicate members, Registered Stock Brokers, Registrar
and Transfer agent and Depository Participants), with effect from January 1, 2019.
Implementation of the same was to be carried out in a phased manner to ensure
gradual transition to UPI with ASBA.

Implementation of Phase II
2. Accordingly, Phase II of the aforesaid Circular dated November 01, 2018 has
become effective from July 1, 2019. Thereafter, for applications by retail individual
investors through intermediaries, the existing process of, investor submitting bid cum-application form with any intermediary along with bank account details, and
movement of such application forms from intermediaries to Self-Certified
Syndicate Banks (SCSBs) for blocking of funds, has been discontinued i.e.
Channel III at Para 5.1 of Circular dated November 01, 2018 has been
discontinued. For such applications only the UPI mechanism would be the
permissible mode i.e.Channel IV at Para 5.1 of the said Circular.

Status of SCSBs on UPI

3. Applications through UPI in IPOs can be made only through the SCSBs / mobile
applications (apps) whose name appears on the SEBI website – http://www.sebi.gov.in
at the following path:
Home » Intermediaries/Market Infrastructure Institutions » Recognised
Intermediaries » Self Certified Syndicate Banks eligible as Issuer Banks for UPI
A list of SCSBs and mobile application, which, as on the date of this Circular, are
live for applying in public issues using UPI mechanism is provided at Annexure ‘A’.
The said list shall be updated on SEBI website.
An investor shall ensure that when applying in IPO using UPI, the name of his
Bank appears in the list of SCSBs displayed on the SEBI website which are live
on UPI.
Further, he/she shall also ensure that the name of the app and the UPI handle
being used for making the application is also appearing in the aforesaid list.

4. An application made using incorrect UPI handle or using a bank account of an
SCSBs or bank which is not mentioned in the aforesaid list is liable to be rejected.

5. Investors whose bank is not live on UPI as on the date of this Circular, may use
the other alternate channels available to them viz. submission of application form
with SCSB or using the facility of linked online trading, demat and bank account
(Channel I or II at Para 5.1 of Circular dated November 01, 2018).

6. Frequently asked questions (FAQs) regarding use of UPI with ASBA in public issue
process can be accessed at the following path on the SEBI website –
http://www.sebi.gov.in :
Home » FAQs » FAQs on Primary Market Issuances » Use of Unified Payments
Interface (UPI) with ASBA in public issue process

7. All entities involved in the process are advised to take necessary steps to ensure
compliance with this circular.

8. This circular is being issued in exercise of the powers under section 11 read with
section 11A of the Securities and Exchange Board of India Act, 1992.

9. This circular is available on SEBI website at http://www.sebi.gov.in under the categories
“Legal Framework” and “Issues and Listing”.

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