Paytm Payments Bank can now issue IPO mandates through UPI

Paytm Payments Bank said on Monday that it has received approval from the Securities and Exchange Board of India (SEBI) to issue payment mandates for initial public offerings (IPOs) through the Unified Payments Interface (UPI).

This will allow traders to invest in capital markets through various brokerage platforms using the @Paytm UPI handle. Paytm’s stock broking subsidiary Paytm Money can also enable IPOs through this handle, the company said.

SEBI’s rule mandates that only UPI handles which have its approval can be used to issue IPO mandates. Last year the capital market regulator and NPCI made it mandatory for retail traders to use UPI for IPOs, departing from the previous


‘applications supported by blocked amount’ (ASBA) process.

“By enabling @Paytm UPI to apply for IPOs we are giving millions of investors the ease of seamless, secure, and rapid payments to help enhance their financial portfolios,” said Sathish Gupta,chief executive of Paytm Payments Bank.

According to Paytm, more autonomy on processing such transactions could reduce transaction failure rates for IPOs on UPI.

The move comes ahead of the expected public listing of several big companies such as LIC, Zomato and Kalyan Jewellers.