Securities Exchange Board of India has raised the UPI limit for IPO from Rs2 lakh to Rs 5lakh. The change in this limit will come into effect from May 1, 2022.
While applying for any of the IPO, retail investors could make the payment through UPI and the limit for the same was up to 2 lakh. It is believed, as the LIC IPO is about the hit the market soon, SEBI has taken the step to make it easier for investors to invest a higher amount.
This progressive move by SEBI, the market watchdog, came almost after 4 months after NPCI enhanced the per transaction limit through the UPI application, supported by the blocked amount (ASBA) from Rs2 lakh to Rs 5 Lakh.
National Payments Corporation of India (NPCI), the company that manages the unified payment Interface conducted a market survey at various intermediaries, to see whether their systems are apt and will be able to take higher payments at once. More than 80% of these entities were ready to accept the higher payment.
So, retail investors may gear up
to have a higher investment window for the IPO, amid this step by SEBI.