MUMBAI: Investors using forms to apply for initial public offering (IPO) had an issue when the Securities and Exchange Board of India (SEBI) made it mandatory to make payments through the Unified Payment Interface (UPI) platform. Aimed at reducing the number of days for an IPO to complete the process and get listed, SEBI is in no mood to change its mandate, and has extended the deadline for linking UPI – ASBA linked application process till March next year.
HUF and minors who applied through application forms had faced difficulties, though SEBI said studies showed greater acceptance of the UPI based applications. According to experts, one of the main reasons for it was that applicants were earlier not using the digital mode for applying, and two, when the mandate comes to investors for authorisation, they fail to do it because of which the application is not processed. While banks on their part have to made little changes to ensure UPI 2.0 for IPO applications goes smoothly, awareness is the key. Being an UPI user, and aware of its applications would make it easier for an IPO investor.
It is useful to get on to the UPI mode of payment because soon a recurring mandate could become a possibility, which will make it easier to use them for mutual fund systematic investment plan (SIP).
The Reserve Bank of India has already approved mandate on cards for standing instructions, and while companies are working on to get the technology in place, the same is expected to be applicable for UPI – recurring mandate on UPI for payment of SIPs etc., expected sometime next year.
While UPI linked payments will make IPO and SIP investments easier, investors also have concern for the safety of transactions, and also how to secure their UPI payments. The key to all your transactions is the four-digit PIN that safeguard it from strangers at all costs. Remember the time when ATM PIN used to create trouble, yes, it is similar.
Second, do not write your complaints to any handles that are cropping up on the social media, they skim your information. Look for the authentic complaint handles. Also, many wrong phone numbers are being circulated online as complaint numbers. Verify the numbers you are calling up before sharing your personal information. These two have been the most used methods of fraud in case of UPI.
When you logde a complaint on social media, do not share your phone number and personal details in an open platform.E-mails sent out to solicit information, phone calls to skim information are to be watched out for — banks do keep putting out information time-to-time that they do not call and ever ask their customers to share their PIN numbers. Further, safeguard your phone with an anti-virus software, use secure data connection and Wi-Fi to make transactions.It will be better if you avoid public Wi-Fi to make transactions.