JOIN USSebi extends second phase of UPI implementation for retail investors till further notice
Amid the prevailing situation due to coronavirus pandemic, markets regulator Sebi on Monday decided to continue with the current phase of Unified Payments Interface (UPI) mechanism facility for retail investors applying for shares in public issue, till further notice.
In November 2019, the timeline for implementation of Phase II of UPI with Application Supported by Blocked Amount (ABSA) was extended till March 31, 2020.
The decision to continue with the second phase came after representations were made to Sebi by various stakeholders amid prevailing uncertainty due to the COVID-19 pandemic.
"It has been stated that the systems and processes for achieving Phase III timelines of T+3 need to be further deliberated and finalized in light of the experience gained during one of the major IPOs that opened and closed in the first week of March 2020," Sebi said.
Therefore, considering that introducing any new changes under the prevailing circumstances where staff at the stakeholders are sparsely populated may not be workable, it has been decided to continue with the current Phase II of the UPI ASBA till further notice, it added.
The regulator said the modalities for the implementation of Phase III of the UPI ASBA will be notified later after deliberations with stakeholders.
Sebi, in November 2018, announced that it would launch UPI as an alternative payment option for retail investors to buy shares in a public issue in a phased manner from January 1, 2019, a move aimed at reducing listing time for an IPO to three days from six.