SEBI’s Master Circular dated May 22, 2024, provides guidelines for the application process and timelines for listing in public issues of securities. This covers various securities under specific SEBI regulations related to non-convertible securities, municipal debt securities, and securitized debt instruments.
To streamline the process, SEBI mandates that individual investors applying for public issues of the following securities through intermediaries (syndicate members, registered stock brokers, registrar to an issue, and transfer agent, depository participants) and where the application amount is up to ₹5 Lakhs, must use UPI (Unified Payments Interface) to block funds. The investor must provide their UPI ID, linked to their bank account, in the bid-cum-application form.
Investors will still have the option to apply through other available methods such as Self Certified Syndicate Banks (SCSBs) and Stock Exchange Platforms.
The provisions of this circular shall be applicable to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments opening on or after November 01, 2024.
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