SEBI i.e. Securities and Exchange Board of India has given a big relief to small investors investing in IPO. SEBI has allowed individual investors to use UPI payment to invest in IPOs. SEBI has changed the rules saying that now even small investors will be able to easily invest in equity shares and use Unified Payment Interface (UPI) to invest money in IPO. Its limit has been kept up to Rs 5 lakh. Let us tell you that for the first time in the year 2019, SEBI had approved the payment by UPI in the IPO. But, now its limit has been increased to Rs 5 lakh.
It is worth noting that NPCI i.e. National Payments Corporation of India had made changes in the payment rules recently. After this, SEBI has also increased the limit for IPO UPI payment to Rs 5 lakh. Earlier this limit was only Rs 2 lakh. This new rule will be implemented from 1 May 2022. Now any person can do UPI transactions up to Rs 5 lakh in a day.
UPI ID is mandatory
Let us tell you that SEBI has said that if an investor wants to invest money in IPO through UPI, then for this, UPI ID will have to be created first. The person investing in the market will have to give UPI ID while transferring shares, while registering any problem etc. In such a situation, it is very important to make this ID.
NPCI had increased the limit for UPI payment
Let us tell you that in the month of December 2021, NPCI, the rule making body for UPI payment, increased the limit of payment through UPI from 2 lakh to 5 lakh. This has benefited both government bonds and investors investing in IPOs. With this, even small investors will now be able to easily invest money in the stock market through UPI. This new rule will be implemented for IPO from 1 May 2022.