In 2018, Sebi introduced the use of UPI as an additional payment mechanism with ASBA for retail investors.
The regulator said based on the experience gained with the current UPI system, it has identified certain issues based on the feedback from market participants.
It said issues including delay in receipt of mandate by investors for blocking of funds due to systemic issues at intermediaries, failure to unblock funds for cancelled or withdrawn cases in the stock exchanges platform, banks blocking multiple amounts for the same UPI application and banks blocking more amount in the investors account than the application amount among others need to be addressed.
The regulator said lead manager is the nodal entity for any issues arising out of a public issuance process and the timelines, processes and compensation policy should form part of the agreements signed among the intermediaries. They should ensure adherence of timelines and compensation policy by intermediaries.
Sebi said syndicate banks should send SMS alerts for mandate block and unblock to ensure timely information to investors.
For ease of doing business, sponsor banks should host a web portal for intermediaries from the date of IPO opening till the date of listing.
The regulator said syndicate banks should compensate the investor, immediately on the date of receipt of complaint from them.
The new rule would come into force for IPOs opening on or after May 01, 2021.
