Delhi Delhi. In a bid to simplify the application process for public issues of debt securities, market regulator Sebi on Tuesday asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds. Also, investors will continue to have the option to avail other modes like applying through self-certified syndicate banks or stock exchange platforms to apply, Sebi said in its circular.
These provisions will apply to public issues of debt securities from November 1. The move is aimed at streamlining and aligning the process of applying for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of public issues of equity shares and convertible shares.
“It has been decided that all individual investors applying in public issues of such securities through intermediaries (such as syndicate members, registered stock brokers, registrars to an issue and transfer agents and depository participants), where the application amount is up to Rs 5 lakh, shall use UPI only for the purpose of blocking funds,” Sebi said. Also, they are required to provide the UPI ID linked to their bank account in the bid-cum-application form submitted to the intermediaries.
Last week, Sebi amended the rules to streamline the process for public issuance of debt securities with the aim of providing faster access to funds for such issuers. Under the amended rules, Sebi reduced the period for seeking public comments on draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers. Also, the minimum subscription period has been reduced from 3 working days to 2 working days. Also, in case of revision in the price band or yield, the bidding period as stated in the offer documents may be extended by one working day instead of three working days.
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