UPI mechanism is made mandatory for retail investors for IPOs (Mainboard and SME) starting from July 01, 2019. Below is the Step-by-Step UPI Process applying in IPO using UPI.
Investor to create UPI ID with UPI eligible bank and app.
The investor enters the bid details in the online IPO application form provided by the broker along with UPI ID and submits an application form to the broker, who in turn upload the bid details on the stock Exchange bidding platform.
Exchange validates PAN and Demat account details of the investor with NSDL/CDSL.
Post validation, the Exchange shares the bid details along with investors UPI ID to sponsor bank. In case of invalid UPI ID investor may request the broker to modify the bid after providing valid UPI ID.
The sponsor bank initiates the fund-blocking request through investor bank. Investors receive a notification on App/E-Mail ID linked to UPI ID.
Investor to confirm request on mobile App by entering a valid PIN.
In case of non-receipt of request/notification investor may request the broker to retrigger the bid by using resend option on NSE e-IPO platform.
On finalization of basis of allotment Debit/Unblocking of Funds shall be initiated by Sponsor Bank.