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TMI BlogIntroduction of Unified Payments Interface (UPI) mechanism for Infrastructure Investment TrustsX X X X Extracts X X X X X X X X Extracts X X X X ..... hrough Unified Payments Interface (UPI) mechanism for application value upto Rs. 5 Lac. 3. The process flow for availing the option of blocking funds through UPI mechanism is placed at Annex I to this Circular. 4. New entities / mechanisms part of the public issue process using UPI 4.1. National Payments Corporation of India (NPCI): NPCI, a Reserve Bank of India (RBI) initiative, is an umbrella organization for all retail payments in India. It has been set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks Association (IBA). 4.2. Unified Payments Interface (UPI): UPI is an instant payment system developed by the NPCI. It enables merging several banking features, seamless fund routing merchant payments into one hood. UPI allows instant transfer of money between any two persons bank accounts using a payment address which uniquely identifies a person's bank account. 4.3. Sponsor Bank : Sponsor Bank means a Banker to the Issue registered with SEBI which is appointed by the Issuer to act as a conduit between the Stock Exchanges and NPCI in order to push the mandate collect requests and / or payment instructions of the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. This circular is issued with the approval of the competent authority. 9. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework Circulars . Yours faithfully, Deena Venu Sarangadharan Deputy General Manager Department of Debt and Hybrid Securities Tel No.022-2644 9266 Email id - [email protected] Annex I Process flow for applying though UPI mechanism 1. Modes of application in public issue of units of InvITs: An investor may apply for public issue of units of InvIT through any of the following modes: Through Self-Certified Syndicate Bank (SCSB) or intermediaries (viz. Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants) a. An investor may submit the bid-cum-application form, with ASBA as the sole mechanism for making payment, physically at the branch of a SCSB, i.e. investor s bank. For such applications, the existing process of uploading of bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange shall, on a continuous basis, electronically share the bid details along with investors UPI ID, with the Sponsor Bank appointed by the issuer. ii. The Sponsor Bank shall initiate a mandate request on the investor i.e. request the investor to authorize blocking of funds equivalent to application amount and subsequent debit of funds in case of allotment. iii. The request raised by the Sponsor Bank, would be electronically received by the investor as a SMS / intimation on his / her mobile no. / mobile app, associated with the UPI ID linked bank account. iv. The investor shall be able to view the details of the request in his UPI App and authorize the transaction. In UPI the SCSBs/ UPI Apps eligible for Public Issues shall send SMS Alerts to Investors for all ASBA applications and may also provide the Invoice in the Inbox as an additional feature to verify the UPI mandate details. The sponsor bank for the IPO shall ensure that in the UPI request, they shall be passing the Invoice in the box parameters as per the NPCI guidelines. v. After reviewing the details properly, the investor shall be required to proceed to authorize the mandate. Such mandate raised by sponsor b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e final file received from the Sponsor Bank, containing status of blocked funds or otherwise, along with the bank account details with respect to applications made using UPI ID. 3.2. The allotment and listing of units of InvITs shall be done within T+ 6 working days. 3.3. The RTA, based on information of bidding and blocking received from the Stock Exchange, shall undertake reconciliation of the bid data and block confirmation corresponding to the bids by all investor category applications (with and without the use of UPI) and prepare the basis of allotment. 3.4. Upon approval of the basis of allotment, the RTA shall share the debit file with Sponsor bank (through Stock Exchange) and SCSBs, as applicable, for credit of funds in the public issue account and unblocking of excess funds in the investor s account. The Sponsor Bank, based on the mandate approved by the investor at the time of blocking of funds, shall raise the debit / collect request from the investor s bank account, whereupon funds will be transferred from investor s account to the public issue account and remaining funds, if any, will be unblocked without any manual intervention by investor or their bank. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application without valid application amount shall be treated as invalid application by the Registrar. (d) The Registrar shall credit units to all valid allottees. (e) The Registrar shall ensure refund of application amount or excess application amount in the bank account of the applicant as stated in its demat account. 3. Stock Exchange 3.1. The Stock Exchanges shall be responsible for i. accurate, timely and secured transmission of the electronic application file uploaded by all participants on the online platform, to the registrar. ii. disseminating the issue information on Exchange web site on a periodic basis across all categories. 4. Intermediaries 4.1. The Intermediaries shall be responsible for addressing any investor grievances arising from the applications uploaded by them in respect of quantity, price or any other data entry or other errors made by them. 4.2. If the Intermediary has not entered any details correctly on the stock exchanges platform and it results on the mismatch with the data obtained by the Registrar from the depositories, the Intermediary shall be responsible for rejection of such applications . 5. Collecting Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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