BackPaytm Money allows HNI investors to bid higher amount of up to ₹5 lakh for IPOs
This move by Paytm Money will provide an alternative to its HNI customers, who currently have to apply through the bank ASBA route for higher investments
PremiumNEW DELHI: One97 Communications Ltd. (OCL) has said that its wholly-owned subsidiary--Paytm Money Ltd.--will help high net-worth individuals (HNIs) to place higher bids of up to ₹5 lakh for initial public offerings (IPOs) through UPI. The Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corp. of India (NPCI).
As per the company, it is the first among discount brokers in the country to launch this service of allowing HNIs to bid higher amounts via UPI.
According to the press release, the launch of the HNI investment service is in line with a Securities and Exchange Board of India (Sebi) circular dated 5 April. The circular mandated higher investments of up to ₹5 lakh through NPCI UPI as against the previous limit of ₹2 lakh per user. This change comes into effect for all IPOs after 1 May 2022.
This move by Paytm Money will provide an alternative to its HNI customers, who currently have to apply through the bank ASBA route for higher investments. ASBA or the Application Supported by Blocked Amount requires investor to make an application to the bank to block funds available in the applicant’s savings bank account or current account, other than overdraft or loan accounts, for subscribing to an issue, till finalisation of allotment in the issue or till withdrawal/ failure of issue or application.
Varun Sridhar, CEO, Paytm Money, said, “The addition of the HNI investor category will allow retail investors to place higher IPO bids through NPCI UPI in a convenient and seamless manner. This new service has been launched in view of the growing appetite for high-value IPOs among Indian investors and comes at an ideal time, right ahead of the much-awaited LIC IPO."
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
