To streamline the application process for public issues of debt securities, the Securities and Exchange Board of India (SEBI) on Tuesday mandated individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds for

The move is aimed at aligning the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of the public issue of equity shares and convertibles, the regulator said.

The rules are effective for all public issuances of debt securities on or after November 1.

Investors will continue to have the choice of availing other methods like applying through self-certified syndicate banks or the stock exchange platform for making applications, SEBI said in its circular.

“…it has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. syndicate members, registered stock brokers, registrar to an issue and transfer agent and depository participants), where the application amount is up to Rs 5 lakh, shall only use UPI for the purpose of blocking of funds,” the circular said.

Investors are also required to provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries.