UPI 2.0 live for IPO - National Stock Exchange(...

UPI 2.0 live for IPO - National Stock Exchange(NSE) & Bombay Stock Exchange(BSE)

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UPI 2.0 live for IPO – National Stock Exchange(NSE) & Bombay Stock Exchange(BSE):

IPO Application process:

Now you can use your UPI ID as a payment option while subscribing for IPO on National Stock Exchange(NSE) & Bombay Stock Exchange(BSE). Simply tell your broker to use UPI ID as the payment option while filling the IPO application.

https://i.imgur.com/00rdRdQ.jpg

UPI Apps & Banks live on IPO:

https://i.imgur.com/SZYNjmt.jpg

Advantages/Value add:

Enjoy the instant fund transfer experience of UPI while subscribing for IPO
Instant mandate creation ensures real time application submission
Customer support for transaction related issues

View Frequently Asked Questions: https://www.npci.org.in/sites/default/files/FAQ...

14 Comments  |  
5 Dimers
Missing
Deal Subedar
145
2008
47

When you have ASBA utility from most of the banks, why at all you should transfer for IPO application?

Missing
Deal Newbie
100
80
3

Can you now link CA with UPI?

Hamster
Entertainer
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eshoppingfreak wrote:

When you have ASBA utility from most of the banks, why at all you should transfer for IPO application?

Because most people were using ASBA for multiple application in friends and family members to increase chance of allotment. Now with UPI, this will atleast stop till people find loophole.

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eshoppingfreak wrote:

When you have ASBA utility from most of the banks, why at all you should transfer for IPO application?

Currently to apply for an IPO, you can either use a physical application form along with signed cheque and submit to your stock broker, or you can do it online through ASBA (Applications supported by blocked amount). What ASBA does is to ensure that the IPO application amount remains blocked in the investor’s bank account and money only to the extent of stocks allotted in the issue is debited. The world digitally has evolved really fast around us in India, this method of applying for an IPO isn’t conducive for mass retail participation.

With UPI for IPO, an investor will be able to fill in basic details into an online form along with the UPI ID with an intermediary, like your brokerage firm. All bids collected will be submitted to the exchange and validated with depositories where the demat account is held. Post this the sponsor bank will initiate a mandate request to authorise blocking of funds equivalent to the application amount and subsequent debit of funds in case of allotment. This is sent as an SMS and as a notification within the UPI mobile application. Investor would then have to login to the UPI app enter the UPI PIN and approve the request. Post allotment, amount to the extent not alloted for the application will get unblocked in the bank account. As simple as that.

IPOs of good companies historically have been the reason for growing investor base around the world. Be it Reliance Industries back in 1977 or Facebook in US in 2012. With UPI now for IPO and instant online demat account opening that can enable anyone to apply for IPO, hopefully good Indian companies will look at our capital markets for fundraising, get retail investors as shareholders, increase market participation, reduce dependence on foreign capital, and help in nation building.

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UPI-based payments for IPOs from Jan 1, 2019 in a three-phased manner

The implementation of new payment system for IPOs will be carried out in a three-phased manner.

In the first phase, retail investors will get the option of UPI payments along with the existing options. The first phase will be between January 1 and March 31, 2019. The second phase will begin thereafter for a period of three months, when retail investors will get the option of only UPI payment.

The listing timeline in the first two phases will remain six working days. After completion of six months or 10 IPOs—whichever is later—the timeline will reduce to three days.

The biggest impediment in reducing listing timeline for Sebi has been cheque payments. The UPI mechanism will help do away with physical handling of forms, said market players.

Reduction in listing timeline will give a boost to the IPO market as it will have issuers and investors tide over market volatility.

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Deal Subedar
28
2090
78
abhishek012 wrote:

UPI-based payments for IPOs from Jan 1, 2019 in a three-phased manner

The implementation of new payment system for IPOs will be carried out in a three-phased manner.

In the first phase, retail investors will get the option of UPI payments along with the existing options. The first phase will be between January 1 and March 31, 2019. The second phase will begin thereafter for a period of three months, when retail investors will get the option of only UPI payment.

The listing timeline in the first two phases will remain six working days. After completion of six months or 10 IPOs—whichever is later—the timeline will reduce to three days.

The biggest impediment in reducing listing timeline for Sebi has been cheque payments. The UPI mechanism will help do away with physical handling of forms, said market players.

Reduction in listing timeline will give a boost to the IPO market as it will have issuers and investors tide over market volatility.

Atmost u can transfer only 1lk right .?

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mrKool_JJ wrote:

Atmost u can transfer only 1lk right .?

UPI Version 2.0 support upto 2 lac

Missing
Deal Subedar
145
2008
47
Expand
marketdimer wrote:

Because most people were using ASBA for multiple application in friends and family members to increase chance of allotment. Now with UPI, this will atleast stop till people find loophole.

ASBA for multiple applications…

You use one account having ASBA for one or 5 applications, still the money will be blocked. Right?

With UPI, one account for one application. But still ASBA is operational, until it stopped, how the UPI, one account for one application can restrict the multiple applications scenario?

At one level, either at PAN or demat account multiple applications are tracked. For multiple applications still you need money for blocking, right? If people can create, PAN, maintain demat for multiple applications, can’t they create a simple UPI for multiple applications?

My initial comment wrt to “When you have ASBA utility from most of the banks, why at all you should transfer for IPO application?”, I learned from the few write ups, even the UPI route, actual transfer doesn’t take place, only blocking is taking place and only on allotment the account will be debited.

For eg, Upstox don’t have platform for IPO. I am applying in the demat opened through Upstox, which is with CDSL, through online SBI, in ASBA manner. How this UPI process starts? UPI is only the interface. Actual IPO application process starts where?

Missing
Deal Subedar
145
2008
47
abhishek012 wrote:

UPI-based payments for IPOs from Jan 1, 2019 in a three-phased manner

The implementation of new payment system for IPOs will be carried out in a three-phased manner.

In the first phase, retail investors will get the option of UPI payments along with the existing options. The first phase will be between January 1 and March 31, 2019. The second phase will begin thereafter for a period of three months, when retail investors will get the option of only UPI payment.

The listing timeline in the first two phases will remain six working days. After completion of six months or 10 IPOs—whichever is later—the timeline will reduce to three days.

The biggest impediment in reducing listing timeline for Sebi has been cheque payments. The UPI mechanism will help do away with physical handling of forms, said market players.

Reduction in listing timeline will give a boost to the IPO market as it will have issuers and investors tide over market volatility.

Reduction in listing timeline will give a boost to the IPO market as it will have issuers and investors tide over market volatility.

How?

Someone says, so it must be right?

How market volatility is constrained with listing time of present 6 days to 3 days?

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Sebi defers phase 1 of UPI for retail IPO investors till June 30, 2019:

Markets regulator Sebi Wednesday extended the timeline for the implementation of phase 1 of Unified Payments Interface (UPI) as an alternative payment mechanism for retail investors buying shares in a public issue.

To ensure smooth transition to UPI in ASBA (Application Supported by Block Amount) and in the back drop of the representation received from various stakeholders, Sebi said, “it has been decided to extend the timeline for implementation of Phase I… by 3 months i.e. till June 30, 2019”

However, the timeline for implementing phase 2 and phase 3 shall remain unchanged from the date of completion of phase 1, Sebi said in a circular.

In November 2018, the regulator had said it would launch UPI as an alternative payment option for retail investors buying shares in a public issue in a phased manner from January 1, 2019, which will cut listing time for an IPO to three days from existing six days.

It had further said the new mechanism would increase the efficiency of the existing system and curtail the need for manual intervention.

Currently, retail investors either invest in an initial public offering (IPO) through bank ASBA or through broker ASBA, where the broker does the bidding and hands over the application form to the investors’ bank.

With the UPI mechanism, the existing process of physical movement of forms from intermediaries to banks for blocking of funds will be discontinued.

Hamster
Entertainer
103
14748
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eshoppingfreak wrote:

ASBA for multiple applications…

You use one account having ASBA for one or 5 applications, still the money will be blocked. Right?

With UPI, one account for one application. But still ASBA is operational, until it stopped, how the UPI, one account for one application can restrict the multiple applications scenario?

At one level, either at PAN or demat account multiple applications are tracked. For multiple applications still you need money for blocking, right? If people can create, PAN, maintain demat for multiple applications, can’t they create a simple UPI for multiple applications?

My initial comment wrt to “When you have ASBA utility from most of the banks, why at all you should transfer for IPO application?”, I learned from the few write ups, even the UPI route, actual transfer doesn’t take place, only blocking is taking place and only on allotment the account will be debited.

For eg, Upstox don’t have platform for IPO. I am applying in the demat opened through Upstox, which is with CDSL, through online SBI, in ASBA manner. How this UPI process starts? UPI is only the interface. Actual IPO application process starts where?

In new scenario, only bank linked to demat account’s UPI can be used to apply for IPO, in 3rd phase of implementation by sebi for new bidding rules. There are many benami demat accounts which doesn’t have real owners and some are of chacha, bua, driver, maali etc.

Now it’s all about trust level now. I can bid say 14k each in 5 different persons name using sbi asba because the person doesn’t worries until I get allotment. And will put only on IPO which has 70-120-200 times bidding. If say 1 of the 5 gets allotment, I’ll sell shares (because I opened trading a/c for him/her and I deal in it) and will ask for money after payout.

Now with UPI, trust level changes completely from both sides. Most convenient person agreed before were old aged or lower starta people but will they trust someone with something unique thing like UPI?

I posted here about how new rules will take effect though saw above post that it is postponed. https://www.desidime.com/forums/dost-and-dimes/...

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SettingBhai wrote:

Any idea if they will link Current accounts to UPI?

no idea

Missing