New Delhi: Retail investors eyeing the subscription of public securities have received a major boost from markets regulator SEBI which streamlined the investment process by making it compulsory to apply for issuance via UPI for an amount of up to Rs 5 lakh, according to a SEBI circular.
The UPI process will be used to apply with intermediaries. Individual investors can continue to apply directly via self-certified syndicate banks and stock exchange platforms, according to SEBI. The new rule kicks in from November 1, 2024.
What is covered by new rule and how to apply
The new rule covers the application for the following instruments:
| S. No. | Instrument |
| 1 | Debt securities |
| 2 | NCR preferential shares |
| 3 | Municipal debt securities |
| 4 | Securitised debt instruments |
Further, applicants will be required to share the details of the bank account linked to UPI in the bid-cum-application form submitted to the intermediaries, SEBI added. The markets regulator has already streamlined the process of issuing debt securities for the ease of access of funds to debt issuers.
SEBI revises rules for public issuance of debt securities
This allows debt issuers to seek public comment on issuances to 1 day from 7 working days earlier for listed securities and 5 days for fresh issuers. SEBI has also reduced the minimum subscription period to 2 days down from 3 days earlier. Also, the minimum subscription period has been cut from 3 working days to 2 working days. If the issuer revises the price band or yield they are allowed to expand the bidding period by one day, compared to 3 working days earlier.
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