new Delhi: SEBI has given a big gift to retail investors investing in IPO. A major change has been made in the rules related to this, which can be very beneficial for small investors. If you are a retail investor and pay through UPI to invest in an IPO of a company, you can now submit bids up to Rs 5 lakh as per the new SEBI norms. Now this limit is Rs 2 lakh. This new limit will be applicable to all IPOs coming after May 1.
Business Today gave this information quoting a SEBI circular on IPO rules. “It has been decided that all retail investors bidding for the IPO should use UPI payment for bids up to Rs 5 lakh,” the SEB circular said. They can also provide their UPI ID in their Application (Bid-cum-Application) form.
SEBI’s decision comes nearly four months after NPCI changed the rules for UPI payment transactions. National Payment Corporation of India (NPCI) has increased the transaction limit for UPI from Rs 2 lakh to Rs 5 lakh.