SEBI raises investment limit through UPI to Rs 5 lakhs in debt securities

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Securities Exchange Board of India has increased the investment limit  for payment through Unified Payment Interface (UPI) for retail investors buying debt securities in the public issue of a company to Rs 5 lakh. 

• At present the limit is Rs 2 lakhs.

• The new rule will come into effect from 1 May 2022.

Concept Clearing 

Debt Securities.

Company needs funds for its business. It can raise the fund by taking loans (borrowing) from banks. Loans taken from banks will not be called debt securities.

Another option for the company is to approach the market also known as the financial market, to borrow. When it approaches the financial market it issues certain papers to the lenders promising to pay interest for a certain time period and also return back the principal amount after a certain time. 

This paper creates debt to the company . These types of paper are also called debentures,bonds etc. As it can be freely bought and sold in the market it is also called as debt securities.

Public Issue 

When the company approaches the market and asks money from the public by issuing its shares or debentures etc it is called a public issue.

SEBI  chairperson : Madhuri Puri Buch

For SEBI kindly see our 28 February 2022 post also.