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UPI Based ASBA Now A Mandate For Retail IPO Investors

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For a seamless IPO application process, retail investors subscribing to an issue need to now follow the UPI based instant payment route. Also, on the sidelines, the developer of UPI, NPCI said the option will be made available from Monday i.e. July 29, 2019 as and when the first IPO after the mandate for UPI has been given goes public.

UPI Based ASBA Now A Mandate For Retail IPO Investors
 

It is to be noted that UPI becomes applicable for all the retail category of investors in IPO who place their application either broker, DPs or RTAs. UPI or unified payments interface provides for instantaneous money transfer between two bank accounts using a phone.

"The new process shall increase efficiency, eliminate the need for manual intervention and logistics at various stages. The UPI 2.0 mandate feature of one-time blocking shall ensure that the amount remains blocked (and not debited) in the customer's account till allotment is done, as currently happening in the ASBA process," said NPCI COO. "The retail investors can enjoy the instant fund transfer experience of UPI while subscribing for IPO. The instant mandate creation ensures real-time application submission.", he added.

It is to be noted that UPI and ASBA system is being integrated phase wise and beginning July 1, 2019, UPI has been made mandatory for retail IPO investors. Further, the timeline of T+6 days shall continue until the implementation of final phase.

GoodReturrns.in

Read more about: ipo upi asba retail investors
Story first published: Tuesday, July 30, 2019, 9:57 [IST]
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