Applying in online IPOs using UPI

Process or steps to apply in IPOs through Broker’s website using UPI.

• Install UPI 2.0 enabled app.
• Create UPI ID and m PIN and linked to your bank account which is linked to your trading account with your broker.
• Login to broker’s back office and select IPO from the menu.
• Select the IPO you want to apply for from the list of open issues.
• Check the details of the offer, like open date, close date, issue size, lot size, and DRHP for the IPO selected.
• Enter your UPI ID linked to your bank account.
• Place your bid(s) only in the multiples of lot size.
• Now click on the checkbox for the cut-off price, if you wish to apply at the cut-off price.
• For placing a bid at any other price, enter a price in the ‘Price’ field.
• Check the agreement at the end and submit.
• Next, you will receive a mandate request on your UPI app in few hours.
• Accept the mandate. This will block the funds required for the application in your bank account until the date of allotment (2 days before the listing date).
• If you receive an allotment, the money is debited from your bank account and shares are credited to your demat account.
• If you don’t receive an allotment, the blocked funds are released on the date of allotment.

Why one need to apply in IPO with UPI?

According to the new mandate from SEBI (phase II onwards), since July 2019, retail individual investors (RII) submitting application form through intermediaries i.e. Syndicate Member or Registered Stock Brokers or Registrar and Transfer or Depository Participants have to necessarily use UPI as a payment mechanism. (SEBI Circular )

This is to streamline the process of applying in IPOs, recently the SEBI has now made it mandatory for all IPOs to be supported by UPI 2.0. With this, now the retail investor can use UPI ID for blocking the funds while subscribing for IPO online on NSE and BSE and directly apply through the broker’s website. You can check the list of apps and banks which support UPI IPO currently on NPCI's website here.

Important Points from SEBI circular for using UPI as a mode of payment for IPOs

• The payment for Applications through UPI in IPOs can be made only through the SCSBs mobile applications (apps) whose name appears on the SEBI website.
• An investor shall ensure that when applying in IPO using UPI, the name of his Bank appears in the list of SCSBs displayed on the SEBI website which are live.
• An application made using incorrect UPI handle or using a bank account of an SCSBs or bank which is not mentioned in the list is liable to be rejected.
• Investors whose bank is not live on UPI, may use the other alternate channels for investing in IPOs viz. submission of application form with SCSB through ASBA or using the facility of linked online trading, demat and bank account.

Unified Payments Interface (UPI)

The Unified Payments Interface (UPI) is an instant smart-phone enabled inter-bank electronic fund transfer service available through your bank. It is developed by the RBI regulated entity “National Payment Corporation of India (NPCI).” It allows inter-bank transfer of money between any two bank account without even adding payee to your account. It can now be used for blocking money for IPO Applications.

UPI ID or VPA

UPI ID is a unique identifier like email id created by you which is mapped to your bank account and can be used to send or receive payments in BHIM / UPI system. You can create UPI ID by login on to your account in your bank's mobile App and then click on UPI and register a UPI ID of your choice.

Creating UPI ID

UPI ID or Virtual Payment Address is to be created with SCSBs eligible to act as an Issuer Bank. The list is there on the SEBI website. It can be created by either of the following ways.

• Create UPI id with the BHIM app by linking your bank account.
• Or create UPI id with your bank directly if your bank has UPI-enabled mobile application.

The list of apps where you can create UPI ID is provided here. For updated list, please check (SEBI website). The banks that you want to have UPI ID for but do not have UPI enabled app can use BHIM app. Thus you can create UPI ID with all other SCSBs with the help of BHIM App.

• BHIM (android & iOS) : @upi
• BHIM Axis Pay (only android) : @axisbank
• BHIM SBIPay (only android) : @sbi
• Citi Mobile (android & iOS) : @citi & @citigold
• HDFC Bank Mobile (only android) : @hdfc
• HSBC Simply Pay (android & iOS) : @hsbc
• iMobile by ICICI Bank (android users) : @icici
• Phone-Pe (android & iOS) : @ybl

How to create UPI ID from BHIM App and what are the prerequisites to get BHIM UPI ID?

The prerequisites to get UPI ID are:

• Smartphone to download BHIM App.
• Bank Account to link it with.
• Mobile no registered with the same bank.
• Debit card linked to your bank account to set the pin.

Now to create the UPI ID using BHIM app, follow these steps:

• Download BHIM (android & iOS) app from Google play store or Apple app store.
• Select your preferred language.
• The app will ask permission to send SMS to verify.
• Successful attempt will take you to Home page.
• If unsuccessful, after 45 seconds an OTP will be sent to you.
• Once NPCI recognizes your mobile number and handset, your registration is complete.
• On successful registration, a default ID i.e. [email protected] will be created.
• You can add one more VPA by going in the profile section.

How to create the UPI ID and m PIN using UPI-enabled bank account app?

• Download bank’s UPI-enabled mobile application from Google play store or Apple app store.
• Go to ‘create UPI’ on home page.
• Enter name, choose id you like and click create.
• Now set the mPIN which is required to make payment through UPI.
• Click on create m PIN. An OTP will be sent to your registered mobile no.
• Enter the last six digits of your debit card and the expiry date of your debit card to set the m PIN.
• Now create m PIN for your UPI which is a 6 digit or 4 digit number of your choice.
• Click submit and your mPIN will be generated.

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