With LIC IPO fever gripping the country, there are many retail investors who want to participate in this frenzy. One of the ways retail investors can bid for shares in the IPO is using their Unified Payment Interface (UPI) ID. According to the LIC DRHP filed with SEBI, only retail investors, eligible employees and eligible policyholders can use the UPI mechanism.
You can apply for an IPO using your UPI ID as a payment method. All you have to do is inform your broker to submit the IPO application using your UPI ID.
The Applications Supported by Blocked Amount (ASBA) and the UPI Mechanism are available to eligible policyholders bidding in the Policyholder Reservation Portion. Interested retail investors must make sure to authorise the UPI mandate request before submitting bids through the UPI Mechanism.
Note that investors must use their own bank account linked with their UPI ID, which is UPI 2.0 certified by NPCI.
According to LIC DRHP, “Bidding through UPI Mechanism shall ensure that details of the Bid are reviewed and verified by opening the attachment in the UPI Mandate Request and then proceed to authorize the UPI Mandate Request using his/her UPI PIN. Upon the authorization of the mandate using his/her UPI PIN, a RIB, Eligible Employee and Eligible Policyholder Bidding through UPI Mechanism shall be deemed to have verified the attachment containing the application details of the RIB, Eligible Employee and Eligible Policyholder Bidding through UPI Mechanism shall be deemed to have verified the attachment containing the application details of the RIB, Eligible Employee and Eligible Policyholder Bidding through UPI Mechanism in the UPI Mandate Request and have agreed to block the entire Bid Amount and authorized the Sponsor Banks to issue a request to block the Bid Amount specified in the Bid cum Application Form in his/her ASBA Account.”
According to LIC DRHP, here are the Do’s and Dont’s one must follow while bidding using UPI
- Do not make the Bid cum Application Form using third party bank account or using third party linked bank account UPI ID;
- Do not link the UPI ID with a bank account maintained with a bank that is not UPI 2.0 certified by the NPCI in case of Bids submitted by RIBs using the UPI Mechanism;
- Do not submit more than one Bid cum Application Form for each UPI ID in case of RIBs Bidding using the UPI Mechanism
- Do not submit incorrect details of the DP ID, Client ID, PAN and UPI ID details if you are a RIB, Eligible Employee or an Eligible Policyholder, Bidding through the UPI Mechanism.
- Note that investors using the UPI Mechanism should mention valid UPI ID of only the Bidder and of the first Bidder (in case of joint account.)
- Ensure that they use only their own ASBA Account or only their own bank account linked UPI ID to make an application in the Offer and not ASBA Account or bank account linked UPI ID of any third party.