How to apply for LIC IPO using UPI?
With LIC IPO fever gripping the country, many retail
investors are looking to get in on the action. One of the ways retail investors
can bid for shares in the IPO is to use their Unified Payment Interface (UPI)
ID. The UPI mechanism is exclusively available to retail investors, eligible
workers, and eligible policyholders, according to the LIC DRHP filed with SEBI.
As a payment option you can use your UPI ID to apply
for an IPO. Simply instruct your broker to submit the IPO application using
your UPI ID.
Eligible policyholders bidding in the Policyholder
Reservation Portion can use the Applications Supported by Blocked Amount (ASBA)
and the UPI Mechanism. Before submitting bids using the UPI Mechanism, retail
investors must first authorize the UPI mandate request.
Investors must use their own bank account linked to
their UPI ID, which must be UPI 2.0 recognized by the National Payments
Corporation of India (NPCI).
What is UPI
and how does it work?
The Unified Payments Interface (UPI) is a system that
integrates several financial services, smooth fund routing, and merchant
payments into a single mobile app (of any participating bank). It also takes
care of "Peer to Peer" collection requests, which can be scheduled
and paid as necessary and convenient.
"According to LIC DRHP,
bidding using the Unified Payment Interface Mechanism "ensures that the
contents of the Bid are evaluated and confirmed by accessing the attachment in
the UPI Mandate Request and then proceeding to authorize the UPI Mandate
Request using his or her UPI PIN."A RIB,
Eligible Employee, and Eligible Policyholder Bidding through UPI Mechanism
shall be deemed to have verified the attachment in the UPI Mandate Request
containing the RIB, Eligible Employee, and Eligible Policyholder Bidding
through UPI Mechanism application details and agreed to block the entire Bid
Amount and authorized the Sponsor Banks to issue a request to block the Bid
Amount specified in the UPI Mandate Request after authorizing the mandate using
his/her UPI Mandate.
How to use
UPI to bid on IPO shares?
Step 1: Fill out the IPO application form with your
UPI ID and submit it.
Step 2: A fund block request will appear in your
Google Pay app.
Step 3: Approve the request to use the Google Pay App
to block the amount for the IPO.
Step 3: The funds will be held in your bank account
until they are allotted, at which point they will be debited. Rs 2 lakh per UPI
transaction is the maximum amount for an IPO application.
are the Do's and Don'ts to follow when bidding for an IPO using UPI, according
to the LIC DRHP:
Do not use a third-party bank
account or a UPI ID linked to a third-party bank account to complete the Bid
Cum Application Form.
In the event of Bids submitted by
RIBs using the UPI Mechanism, do not link the UPI ID to a bank account
maintained with a bank that is not UPI 2.0 certified by the NPCI.
If RIBs are bidding using the UPI
Mechanism, do not submit more than one Bid cum Application Form for each UPI ID.
If you are a RIB, Eligible
Employee, or Eligible Policyholder bidding through the UPI Mechanism, do not
submit incorrect DP ID, Client ID, PAN, or UPI ID details.
Investors that use the UPI
Mechanism should only mention the Bidder's and the first Bidder's valid UPI IDs
(in case of joint account.)
To apply for the Offer, they must
utilize only their own ASBA Account or bank account linked UPI ID, and not the
ASBA Account or bank account linked UPI ID of any third party.