The second phase of UPI as another method for buying shares during the public issue will come into effect from July 1. And with as per the SEBI circular, the entire process that entails submission of bid cum application form with the intermediary and then its movement to self-certified syndicate banks for blocking of funds will be done away with.
Further, henceforth for such applications, only UPI mode will be accepted.
SEBI in November said that the UPI will be available as an alternative mode for buying shares in the public issue from January 1, 2019, in a phased process. The process would in fact cut IPO listing time from six days to 3 days.
The date then was extended to June 30, 2019, for a smoother transition to UPI in ASBA or Application Supported by Block Amount.