SEBI gives gift to retail investors, now you can invest up to Rs 5 lakh in debt securities through UPI

Market regulator SEBI on Tuesday stepped up efforts to make investing easier for investors, using the UPI system to buy debt securities on public issue for retail investors. The limit has been raised to Rs 5 lakh. At present this limit was 2 lakh rupees.

The Securities and Exchange Board of India (SEBI) has said in a circular that the new system will be applicable to public issue of debt securities opened on or after May 1, 2022.

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Under the existing rules of SEBI, investors are given the option to apply for public issue of debt securities with the facility of blocking funds through UPI system for an application price of up to Rs 2 lakh.

Sebi took a big decision

SEBI has now decided to increase the investment limit to Rs 5 lakh through UPI system, in consultation with market partners and to bring uniformity in investment benefits as well as requirements for investors.

SEBI said investors could use the system to block funds for an application cost of up to Rs 5 lakh per application.

What is UPI?

UPI is an instant payment system developed by the National Payment Corporation of India (NPCI). It allows instant money transfer between any two people’s bank accounts using Payments.

In December 2021, NPCI made an initial public offering (IPO) of UPI-based Application Supported by Blocked Amount (ASBA), raising the transaction limit from Rs 2 lakh to UPI.