Retail investors must block funds only via UPI for investment of up to Rs 5 lakh

The Securities and Exchange Board of India(Sebi) on Tuesday said retail investors applying for public issues of debt securities through stock brokers for amounts up to ₹5 lakh should only use UPI to block funds.

Individual investors would continue to have the choice of availing other modes through stock exchange platform for making an application in the public issue, Sebi said in a circular. The new rule would be applicable to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments opening from Nov 1, 2024.