Sebi on Tuesday issued guidelines aimed at addressing grievances of IPO investors, particularly those using the unified payment interface (UPI) for payments.
The market regulator identified key issues plaguing the UPI payment process and issued operational guidelines to address them. Under the new norms, investment bankers and brokers will have to compensate IPO applicants for lapses by paying Rs 100 per day or 15 per cent per annum interest of application amount (whichever is higher).
“Lead managers shall ensure that the payment of processing fee/selling commission to the intermediaries be released only after ascertaining that there are no pending complaints pertaining to block/unblock of UPI bids, receiving the confirmation on completion of unblocks,”Sebi has said.
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