NEW DELHI: One97 Communications Ltd. (OCL) has mentioned that its wholly-owned subsidiary–Paytm Cash Ltd.–will assist excessive net-worth people (HNIs) to position greater bids of as much as ₹5 lakh for preliminary public choices (IPOs) by way of UPI. The Unified Funds Interface (UPI) is an instantaneous real-time cost system developed by Nationwide Funds Corp. of India (NPCI).
As per the corporate, it’s the first amongst low cost brokers within the nation to launch this service of permitting HNIs to bid greater quantities by way of UPI.
Based on the press launch, the launch of the HNI funding service is in step with a Securities and Alternate Board of India (Sebi) round dated 5 April. The round mandated greater investments of as much as ₹5 lakh by way of NPCI UPI as towards the earlier restrict of ₹2 lakh per consumer. This modification comes into impact for all IPOs after 1 Might 2022.
This transfer by Paytm Cash will present a substitute for its HNI prospects, who at present have to use by way of the financial institution ASBA route for greater investments. ASBA or the Utility Supported by Blocked Quantity requires investor to make an utility to the financial institution to dam funds accessible within the applicant’s financial savings checking account or present account, apart from overdraft or mortgage accounts, for subscribing to a difficulty, until finalisation of allotment within the problem or until withdrawal/ failure of problem or utility.
Varun Sridhar, CEO, Paytm Cash, mentioned, “The addition of the HNI investor class will enable retail buyers to position greater IPO bids by way of NPCI UPI in a handy and seamless method. This new service has been launched in view of the rising urge for food for high-value IPOs amongst Indian buyers and comes at a super time, proper forward of the much-awaited LIC IPO.”
Supply: Live Mint