SEBI introduces Unified Payments Interface (UPI) for Real Estate Investment Trusts.– 24th June, 2022

Synopsis:- SEBI, vide its Circular dated 24th June, 2022 introduces Unified Payments Interface (UPI) for Real Estate Investment Trusts. The Circular is in reference to SEBI Circular dated 15th January, 2019 where SEBI provided process for payment for applications in public issue  of units of Real Estate Investment Trust (REIT) through the facility of ASBA.

After Consultation with stakeholders, SEBI has now decided to provide an additional option to individual investors to apply in public issues of units of REITs with a facility to block funds through Unified Payments Interface (UPI) mechanism for application value upto Rs. 5 Lakh.

The process flow for availing the option of blocking funds through UPI mechanism is placed at Annex I to this Circular.

SEBI further added that, National Payments Corporation of India (NPCI), Unified  Payments  Interface  (UPI) and Sponsor Bank are the New entities / mechanisms to be part of the public issues through UPI.

Further, it is noted that details of investor viz. PAN, DP ID/ Client ID, entered on the Stock Exchange platform at the time of bidding, shall be validated by the Stock Exchange/s with the Depositories on real time basis.

Further, SEBI availed requirement on Stock Exchanges to update  demand  data  on  working  days  on  their website which  shall  include  all the  UPI  (accepted/pending)  and ASBA bids.

Other than that, the additional text of data fields required in the Application and bidding form is placed at Annex II of the Circular. The roles of the Issuer, Registrar, Stock exchange, Intermediaries and Collecting Banks is given at Annex III of this Circular.

The provisions of this circular shall be applicable to a public issue of units of InvIT under the SEBI (Infrastructure  Investment  Trusts)  Regulations,  2014 which opens on or after 01st August, 2022. Stock  Exchanges, Depositories, NPCI, Sponsor Banks and Self  Certified Syndicate Banks shall make required changes to implement the same from 01st August, 2022

Link to the Circular:
https://www.sebi.gov.in/legal/circulars/jun-2022/introduction-of-unified-payments-interface-upi-mechanism-for-real-estate-investment-trusts-reits-_60070.html

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