We were providing our clients with the option of ASBA to apply for IPOs on our website. SEBI has recently made it mandatory for all IPOs to be supported by UPI. You can now apply for IPOs using your UPI ID. All you have to do is go to www.tradeplusonline.com, logon to to IPO/GSEC/Bond section, enter UPI ID, Quantity, bid price and submit. This is a completely an online process and requires no paperwork.
What is UPI
UPI an instant payment system developed by the National Payments Corporation Of India (NPCI) is made mandatory for Initial Public Offering (IPO) applications since July 2019. UPI is a payment option available on mobile platform. UPI provides the facility to transfer funds from one person’s bank account to another person’s bank account on real time basis.
For IPO application, UPI payment method is used to block the funds in one’s account similar to ASBA process. Investors who have UPI ID shall mention it in their IPO application. This will be used by the stock broker to submit the bid in stock exchange platform.
Benefits of UPI for IPO applications
- Easy and simplified process
- Reduction of time period between closure of IPO and listing date is considerably reduced to just 3 days as against 6 days earlier.
- Similar to ASBA process, money will be blocked in your bank account till the allotment
- Reduction of manual intervention in the process
Process of creating UPI Id with BHIM app
- Download and install BHIM app from play store or APP store
- Set your language
- Select the mobile number that is registered with your bank
- Login by creating a 4 digit password
- Select and link your bank account
- Provide the details of your debit card and create your UPI PIN.
Step by step process to apply for IPO through Tradeplus
- Go to our website tradeplusonline.com
- Logon to IPO/GSEC/Bond section under “My Account”
- Click “Apply” button against the IPO issue you wish to invest in
- Enter your UPI ID, Bid Quantity, Bid Price and submit
- Your bid details will be uploaded in the stock exchange platform
- You will receive a notification on App /SMS on your mobile linked to UPI ID. Launch your Bank/BHIM APP to check the notification
- You need to confirm/accept the UPI mandate on Bank/BHIM app before the close of issue to process your application.
For any clarification, do email [email protected]